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What changed in Doximity, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Doximity, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+282 added−275 removedSource: 10-K (2024-05-23) vs 10-K (2023-05-26)

Top changes in Doximity, Inc.'s 2024 10-K

282 paragraphs added · 275 removed · 232 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

70 edited+17 added−13 removed79 unchanged
Biggest changeThe content of these modules may include updates on how certain drugs perform in clinical trials, the opening of new hospitals or departments within a health system, or other information that is relevant to our members. 5 Table of Contents • Interactivity : sponsored modules that enable digital activities such as conference attendance, connecting with a sales representative, booking an appointment, or ordering product samples. • Peer : sponsored modules that enable our members to connect and build professional relationships with thought-leaders, department chairs, and other experts within the Doximity network.
Biggest changeSponsored modules that enable digital activities such as conference attendance, connecting with a sales representative, booking an appointment, or ordering product samples. • Peer . Sponsored modules that enable our members to connect and build professional relationships with thought-leaders, department chairs, and other experts within the Doximity network.
Individual listings on our platform for open jobs, either posted directly by a health system or by a recruiting firm. Our members can search and browse these listings. • Direct message. Recruiters, physicians, and administrators can direct message members who might be a good fit for a given open position.
Individual listings on our platform for open jobs, either posted directly by a health system or by a recruiting firm. Our members can search and browse these listings. • Direct message. Recruiters, physicians, and administrators can directly message members who might be a good fit for a given open position.
Further corporate governance information, including our corporate governance guidelines, composition of our board and its committees, and Code of Conduct, are also available on our investor relations website under the heading “Governance Documents.” The contents of our websites are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only. 13 Table of Content s
Further corporate governance information, including our corporate governance guidelines, composition of our board and its committees, and Code of Conduct, are also available on our investor relations website under the heading “Governance & ESG Documents.” The contents of our websites are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only. 13 Table of Content s
We regularly suggest new connections to members, such as co-residents, co-fellows, co-authors, colleagues from the same hospital or practice, and medical school classmates, enabling referrals, and sharing of medical knowledge and career opportunities. • Search. Members can use our powerful search technology to find other medical professionals by name, specialty, expertise, affiliation, or location.
We regularly suggest new colleague connections to members, such as co-residents, co-fellows, co-authors, colleagues from the same hospital or practice, and medical school classmates, enabling referrals, and sharing of medical knowledge and career opportunities. • Search. Members can use our powerful search technology to find other medical professionals by name, specialty, expertise, affiliation, or location.
Our People, Culture, Values, and Human Capital Resources At Doximity, we organize our teams into small, nimble groups that operate autonomously, are empowered to make decisions quickly, and aim to stay close to our members and customers. We prioritize diversity and inclusion, and regularly track our progress against quantifiable goals. We have always been a geographically distributed team.
Our People, Culture, and Human Capital Resources At Doximity, we organize our teams into small, nimble groups that operate autonomously, are empowered to make decisions quickly, and aim to stay close to our members and customers. We prioritize diversity and inclusion, and regularly track our progress against quantifiable goals. We have always been a geographically distributed team.
Profile information includes education and training, hospital affiliations, and practice contact information as well as certifications and licenses, specialization and clinical expertise, links to published research reports and press mentions, clinical trial participation, and any awards conferred. Our technology automatically searches for and updates profiles with new relevant information such as additional press mentions and awards.
Profile information includes education and training, hospital affiliations, practice contact information, certifications and licenses, specialization and clinical expertise, links to published research reports and press mentions, clinical trial participation, and any awards conferred. Our technology automatically searches for and updates profiles with new relevant information such as additional press mentions and awards.
We are physicians-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians. Doximity’s physician cloud puts modern software tools in the hands of physicians and other medical professionals.
We are physicians-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians. Doximity’s physician cloud puts modern software in the hands of physicians and other medical professionals.
Our platform provides access, free of charge to all of our members, to content from a variety of internal and third-party sources, including content created in-house and content linked to third-party sites (some of which may require a separate subscription). • Medical articles.
Our platform provides access, free of charge for all of our members, to content from a variety of internal and third-party sources, including content created in-house and content linked to third-party sites (some of which may require a separate subscription). • Medical articles.
Our Marketing Solutions deliver high engagement and help those customers embrace the shift to digital marketing. We count the top pharmaceutical manufacturers, hospitals, and health systems as our customers.
Our Marketing Solutions deliver high engagement and help customers embrace the shift to digital marketing. We count the top pharmaceutical manufacturers, hospitals, and health systems as our customers.
We also expect our existing competitors in the markets for Marketing, Hiring, and Telehealth Solutions to continue to focus on these areas. Many of our competitors and potential competitors have significantly greater financial, technological, and other resources than we do and greater name recognition and more established distribution networks and relationships with healthcare providers than us.
We also expect our existing competitors in the markets for Marketing, Hiring, and Productivity Solutions to continue to focus on these areas. Many of our competitors and potential competitors have significantly greater financial, technological, and other resources than we do and greater name recognition and more established distribution networks and relationships with healthcare providers than us.
We have an opportunity to engage additional pharmaceutical manufacturers and health systems and potential customers in other industries as we raise awareness of our offerings through our sales and marketing efforts and as we expand our offerings. • Further monetize our Telehealth Solutions.
We have an opportunity to engage additional pharmaceutical manufacturers and health systems and potential customers in other industries as we raise awareness of our offerings through our sales and marketing efforts and as we expand our offerings. • Further monetize our Productivity Solutions.
Further, many states in which we operate and in which our members and customers as well as their patients reside also have laws that protect the privacy and security of sensitive and personal information, including health information, information regarding mental health and substance use treatment, and other information related to the provision of healthcare services.
Further, many states in which we operate and in which our members and customers as well as their patients reside also have laws that protect the privacy and security of sensitive and personal information, including health information, information 11 Table of Contents regarding mental health and substance use treatment, and other information related to the provision of healthcare services.
Marketing Solutions We provide a digital marketing platform for pharmaceutical manufacturers and health systems to serve our members with tailored sponsored content that is highly relevant to their clinical practices, including information about medications, clinical trials, guidelines and resources, and trends in medical and patient care.
Marketing Solutions We provide a digital marketing platform for pharmaceutical manufacturers and health systems on a subscription basis to serve our members with tailored sponsored content that is highly relevant to their clinical practices, including information about medications, clinical trials, guidelines and resources, and trends in medical and patient care.
The principal purposes of our equity incentive plans are to attract, retain, and motivate selected employees, consultants, and directors through the granting of stock-based compensation awards and cash-based performance bonus awards. To our knowledge, none of our employees is represented by a labor union or covered by a collective bargaining agreement.
The principal purposes of our equity incentive plans are to attract, retain, and motivate selected employees, consultants, and directors through the granting of stock-based compensation awards and cash-based performance bonus awards. To our knowledge, none of our employees is represented by a labor union or covered by a 10 Table of Contents collective bargaining agreement.
Our services that allow members and other platform users to leverage such telephonic communications may be subject to these laws and regulations. 11 Table of Contents Other Healthcare Laws and Regulations and Health Reform There are many laws that govern the activities of healthcare professionals, some of which may be applied to us because of our relationships with them.
Our services that allow members and other platform users to leverage such telephonic communications may be subject to these laws and regulations. Other Healthcare Laws and Regulations and Health Reform There are many laws that govern the activities of healthcare professionals, some of which may be applied to us because of our relationships with them.
Once verified, members gain access to our network, newsfeed, and—depending on their credentials—our productivity tools, including voice and video Dialer. 3 Table of Contents Our Professional Network • Profile. Members have a personalized and validated professional profile on the Doximity network that acts as a digital curriculum vitae.
Once verified, members gain access to our network, newsfeed, and—depending on their credentials—our productivity tools, including Doximity GPT and our voice and video telehealth product, Dialer. 3 Table of Contents Professional Network • Profile. Members have a personalized and validated professional profile on the Doximity network that acts as a digital curriculum vitae.
The up-to-date and scaled nature of our database is critical to the value proposition for both our members and our pharmaceutical manufacturer and health system customers. • Statistical and machine learning methodologies: We utilize proprietary statistical and machine learning methodologies across our platform for a number of use cases to benefit our members.
The up-to-date and scaled nature of our database is critical to the value proposition for both our members and our pharmaceutical manufacturer and health system customers. 8 Table of Contents • Statistical and machine learning methodologies: We utilize proprietary statistical and machine learning methodologies across our platform for a number of use cases to benefit our members.
The actual or perceived failure by us, our customers, partners, or vendors to comply with such obligations could harm our reputation, subject us to significant fines and liability, or otherwise adversely affect our business..” 10 Table of Contents Data Collection and Protection We collect and may use personal information to help run our business (including for analytical purposes) and to communicate and otherwise reach our network members.
The actual or perceived failure by us, our customers, partners, or vendors to comply with such obligations could harm our reputation, subject us to significant fines and liability, or otherwise adversely affect our business .” Data Collection and Protection We collect and may use personal information to help run our business (including for analytical purposes) and to communicate and otherwise reach our network members.
For additional information, see “Risk Factors—Risks Related to the Healthcare Industry.” Intellectual Property We believe that our intellectual property rights are valuable and important to our business.
For additional information, see “ Risk Factors—Risks Related to the Healthcare Industry .” Intellectual Property We believe that our intellectual property rights are valuable and important to our business.
Doximity members can stay abreast of and celebrate the professional updates and accomplishments of their peers and colleagues, from new jobs to awards, newly authored publications, and press mentions. • Clinical discussions . Members can comment on and react to posts directly in their newsfeeds.
Doximity members can stay abreast of and celebrate the professional updates and accomplishments of their peers and colleagues, from new jobs to awards, newly authored publications, and press mentions. 4 Table of Contents • Clinical discussions . Members can comment on and react to posts directly in their newsfeeds.
At the core of our platform is the largest medical professional network in the nation, which creates proximity within our community of doctors and hundreds of thousands of other medical professionals. Our focus on clinician-centric product design and productivity has led to high levels of adoption and endorsement by health professionals.
At the core of our platform is the largest medical professional network in the nation, which creates proximity within our community of doctors and hundreds of thousands of other medical professionals. Our focus on physician-centric product design and clinical productivity has led to high levels of adoption and endorsement by health care professionals.
We have not experienced any work stoppages, and we consider our relations with our employees to be good. As of March 31, 2023, we had a total of 977 full-time equivalent employees. More than a third of our full-time equivalent employees work in R&D, including in product, engineering, and data.
We have not experienced any work stoppages, and we consider our relations with our employees to be good. As of March 31, 2024, we had a total of 827 full-time equivalent employees. More than a third of our full-time equivalent employees work in R&D, including in product, engineering, and data.
Some of the major components include: • Aggregating and coupling disjointed datasets from numerous medical sources into a live database of physician information to perform descriptive, diagnostic, and prescriptive analysis. • Medical news tailored to a member’s specific specialty, clinical areas of interest, and viewing history, ensuring that each member’s news feed is personalized to them and that the digital marketing content of our pharmaceutical and health system customers will be served to members that are more likely to find it relevant and interesting based on their profile and viewing history. • Automatically matching top candidates with openings offered by recruiters and administrators based on job history, interests, and geography. • Extensive, interactive database of U.S. medical residency and employment data: We collect and maintain a vast repository of residency and employment data from our members, which includes member reviews on their experience at hospitals and residency programs, detailed statistics on user experiences regarding program setting and training environment, and a salary map across different specialties and geographies across the country.
Some of the major components include: • Aggregating and coupling disjointed datasets from numerous medical sources into a live database of physician information to perform descriptive, diagnostic, and prescriptive analysis. • Medical news tailored to a member’s specific specialty, clinical areas of interest, and viewing history, ensuring that each member’s news feed is personalized to them and that the digital marketing content of our pharmaceutical and health system customers will be served to members that are more likely to find it relevant and interesting based on their profile and viewing history. • Automatically matching top candidates with openings offered by recruiters and administrators based on job history, interests, and geography. • Upleveling our customers’ marketing programs with AI-powered brainstorming and writing tools that allow them to generate more relevant and personalized content to better engage individual physicians. • Extensive, interactive database of U.S. medical residency and employment data: We collect and maintain a vast repository of residency and employment data from our members, which includes member reviews on their experience at hospitals and residency programs, detailed statistics on user experiences regarding program setting and training environment, and a salary map across different specialties and geographies across the country.
We make this data 8 Table of Contents available to all of our members in easily accessible portals which are automatically updated as our members provide additional data on the platform. • Proprietary productivity and telehealth tools: Our productivity and telehealth tools have been built to be physician-first with usability in mind at every step.
We make this data available to all of our members in easily accessible portals, which are automatically updated as our members provide additional data on the platform. • Proprietary productivity tools: Our productivity tools have been built to be physician-first with usability in mind at every step.
However, we believe we are the only professional network solely dedicated to medical professionals, with a purpose-built platform specifically designed to address a broad range of unique needs of today’s healthcare professionals. • Competing for customers: We compete across several categories to access spend in the healthcare category. We specifically compete for access to marketing, hiring, and telehealth budgets.
However, we believe we are the only professional network solely dedicated to medical professionals, with a purpose-built platform specifically designed to address a broad range of unique needs of today’s healthcare professionals. • Competing for customers: We compete across several categories to access spend in the healthcare category.
Hiring Solutions customers, including health systems and medical recruiting firms, gain access to a comprehensive nationwide network and database of specialty and sub-specialty professionals. We align our goals with our customers and help them make the necessary leap to digital. Our Growth Strategies • Grow the Doximity Network.
Hiring Solutions customers, including health systems and medical recruiting firms, gain access to a comprehensive nationwide network and database of specialty and subspecialty professionals. We align our goals with our customers and help them make the necessary leap to digital. 7 Table of Contents Our Growth Strategies • Grow the Doximity Network.
Our AI and ML-supported platform enables customers to run highly targeted hiring campaigns across a range of medical specialties and sub-specialties, uncovering passive but eligible candidates for proactive outreach for any locum tenens or permanent position. Our modules for Hiring Solutions consist of the following: • Job posts.
Our AI and ML-supported platform enables customers to run highly targeted hiring campaigns across a range of medical specialties and subspecialties, uncovering both active and passive eligible candidates with proactive outreach for any locum tenens or permanent position. Our modules for Hiring Solutions consist of the following: • Job posts.
Health systems have a similar track record of expanding their usage of our platform across different service lines. 7 Table of Contents • Attract new customers.
Health systems have a similar track record of expanding their usage of our platform across different service lines. • Attract new customers.
Hiring Solutions We offer our Hiring Solutions to both health systems and medical recruiting firms, which pay for subscriptions that provide them the ability to search and connect with medical professionals on Doximity.
Hiring Solutions We offer our Hiring Solutions to health systems, medical recruiting firms, and other organizations that pay for subscriptions that provide them the ability to search and connect with medical professionals on Doximity.
For example, members might discuss the results of a new clinical study, or even ask questions to the author of that study. Ultimately, dialogue and interactive elements drive engagement within the ecosystem and facilitate peer-to-peer education. • Op-Med. Members can submit Op-Med articles for publication on Doximity.
For example, members might discuss the results of a new clinical study, or even ask questions to the author of that study. Ultimately, this dialogue and interactivity drive engagement within the ecosystem and facilitates peer-to-peer education. • Op-Med. Members can submit Op-Med articles for publication on Doximity.
On top of this base service, we have designed a broad range of customized, physician-first telehealth features specific to our platform such as ‘call nudge’ reminding a patient of a visit, ‘straight to voicemail’ enabling physicians to choose not to disturb patients after-hours, and the flexibility to switch between voice and video at will, among others. • Design Principles: Our technology stack and product development teams are set up to enable rapid prototyping and development of new features via controlled rollouts.
We have designed each of these services with a broad range of customized, physician-first features specific to our platform, such as our ‘call nudge’ reminding a patient of a visit, ‘straight to voicemail’ enabling physicians to choose not to disturb patients after-hours, and the flexibility to switch between voice and video at will, among others. • Design Principles: Our technology stack and product development teams are set up to enable rapid prototyping and development of new features via controlled rollouts.
We include the following critical digital tools in one easy-to-use app and website. • Digital Workflow: Fax and eSignature. The Doximity platform allows physicians to send and receive HIPAA-compliant faxes through our mobile app or website.
We include the following critical productivity tools in one easy-to-use app and website. • Fax and eSignature. The Doximity platform allows members to send and receive HIPAA-compliant faxes through our mobile app or website.
Dialer Enterprise enables unlimited access to Dialer for all users across a health system’s organization, and unlocks the same premium feature set as Dialer Pro with an added service layer for the organization that includes a dedicated customer success manager, premium user support, and monthly utilization reporting.
Dialer Enterprise enables unlimited access to Dialer for all users across a health system’s organization, with an added service layer for the organization that includes a dedicated customer success manager, premium user support, and monthly utilization reporting.
Our members include more than 80% of physicians across all 50 states and every medical specialty, as well as over 50% of U.S. nurse practitioners and physician assistants, and over 90% of graduating U.S. medical students. Our mission is to help every physician be more productive and provide better care for their patients.
Our members include more than 80% of U.S. physicians, spanning all 50 states and every medical specialty, along with over 60% of U.S. nurse practitioners and physician assistants, and over 90% of graduating U.S. medical students. Our mission is to help every physician be more productive and provide better care for their patients.
As of March 31, 2023, we have a total of eleven registered or applied-for trademarks in the United States and four registered trademarks in non-U.S. jurisdictions. We also have registered domain names for websites that we use in our business, such as www.doximity.com and other variations.
As of March 31, 2024, 12 Table of Contents we have a total of fifteen registered or applied-for trademarks in the United States and four registered trademarks in non-U.S. jurisdictions. We also have registered domain names for websites that we use in our business, such as www.doximity.com and other variations.
For additional information, see “Risk Factors—Risks Related to the Healthcare Industry.” Federal and State Telecommunications Laws There are a number of federal and state laws and regulations potentially applicable to communications by phone, text message, or facsimile, including the TCPA, and those laws and regulations are continuously evolving.
For additional information, see “ Risk Factors—Risks Related to the Healthcare Industry .” Federal and State Telecommunications Laws There are a number of federal and state laws and regulations potentially applicable to communications by phone, text message, or facsimile, including the Telephone Consumer Protection Act, and those laws and regulations are continuously evolving.
Specifically, we compete for medical professionals as platform members, and for pharmaceutical and health system companies as customers for our Marketing, Hiring, and Telehealth Solutions. • Competing for members: We compete with large technology companies that have developed online networking and collaboration tools such as LinkedIn, Facebook, Google, and Twitter, in addition to smaller, emerging companies.
Specifically, we compete for medical professionals as platform 9 Table of Contents members, and for pharmaceutical and health system companies as customers for our Marketing, Hiring, and Productivity Solutions. • Competing for members: We compete with large technology companies that have developed online networking and collaboration tools such as LinkedIn, Facebook, Google, and X (formerly known as Twitter), in addition to smaller, emerging companies.
We focus on innovative, useful and unobtrusive features that are designed to optimize the healthcare professional’s workflow. And at all times, we follow the stringent security and privacy requirements of a physician’s data; our messaging tools are compliant with HIPAA and validated through external auditing procedures.
We focus on innovative, useful and unobtrusive features that are designed to optimize the healthcare professional’s workflow. And at all times, we follow the stringent security and privacy requirements of a physician’s data; our messaging tools are HIPAA-compliant and validated through external auditing procedures. Sales and Marketing We employ a direct sales organization composed of highly trained team members.
For example, we had over 380,000 unique active providers use our telehealth tools in the quarter ended March 31, 2023. Our business model is designed to both respect and support physicians while driving value for our customers through our Marketing, Hiring, and Telehealth Solutions (as defined below).
For example, we had more than 580,000 unique active providers use our clinical workflow tools in the quarter ended March 31, 2024. Our business model is designed to both respect and support physicians while driving value for our customers through our Marketing, Hiring, and Productivity Solutions (as defined below).
Our Strengths Our business exhibits a number of key strengths which we believe position us to drive sustained growth. • We are the trusted and secure physician-first platform. Since our founding, Doximity has been built to be physician-first, with trust at the core of what we do.
Our Strengths Our business exhibits a number of key strengths which we believe position us to drive sustained growth. • We are the trusted physician-first platform. Since our founding, Doximity has been built to be physician-first, with trust at the core of what we do. We verify the identities and credentials of our medical professionals through integration with third-party databases.
In addition, though we rely in part upon these legal and contractual protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements to our platform are larger contributors to our success in the market. As of March 31, 2023, we have five provisional patent applications in the United States.
In addition, though we rely in part upon these legal and contractual protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements to our platform are larger contributors to our success in the market.
Item 1. Business Overview We are the leading digital platform for U.S. medical professionals, as measured by the number of U.S. physician members, with over two million medical professional members as of March 31, 2023.
Item 1. Business Overview We are the leading digital platform for U.S. medical professionals, with over two million registered members as of March 31, 2024.
The team works directly with our customers to deeply understand a customer’s goals, priorities, and messaging before helping with content and media formats. Our team can develop new content or fine-tune and reformat existing content for digital and feed-friendly marketing. We also provide ongoing support and reporting at the customer’s request. We have become a valued collaborator to our customers.
The team works directly with our customers to deeply understand a customer’s goals, priorities, and messaging before helping with content and media formats. Our team can develop new content or fine-tune and reformat existing content for digital and feed-friendly marketing.
Larger and more established companies may focus on our market and could directly compete with us. Smaller companies, including application developers, could also launch new products and services that compete with us and that could gain market acceptance quickly.
The industries in which our products are offered are evolving rapidly and are becoming increasingly competitive. Larger and more established companies may focus on our market and could directly compete with us. Smaller companies, including application developers, could also launch new products and services that compete with us and that could gain market acceptance quickly.
We continually review our development efforts to assess the existence and patentability of new intellectual property. We have an ongoing trademark and service mark registration program pursuant to which we register our brand names, product names, and logos in the United States to the extent we determine appropriate and cost-effective.
We have an ongoing trademark and service mark registration program pursuant to which we register our brand names, product names, and logos in the United States to the extent we determine appropriate and cost-effective.
Our Solutions for Healthcare Customers We offer Marketing, Hiring, and Telehealth Solutions to pharmaceutical manufacturers, health systems, medical recruiting firms, and certain other healthcare companies on a predominantly subscription basis.
We also offer Doximity GPT as an enterprise-level solution for hospitals and health systems. Our Solutions for Healthcare Customers We offer Marketing, Hiring, and Productivity Solutions to pharmaceutical manufacturers, health systems, medical recruiting firms, and certain other healthcare companies on a predominantly subscription basis.
Modules are the core building blocks of the marketing plan and are additive to one another. We package them into sponsored programs to meet the needs of individual brands and service lines.
Modules are the core building blocks of the marketing plan and are additive to one another. We package them 5 Table of Contents into sponsored programs to meet the needs of individual brands and service lines. Our sponsored modules can be categorized as Awareness, Interactivity, and Peer, as follows: • Awareness.
For additional information, see “Risk Factors—Risks Related to Our Business—We are subject to stringent and changing laws, regulations, self-regulatory schemes, contractual obligations, and standards related to privacy, data protection, and information security.
For additional information, see Item 1C of this Annual Report on Form 10-K and “ Risk Factors—Risks Related to Our Business—We are subject to stringent and changing laws, regulations, self-regulatory schemes, contractual obligations, and standards related to privacy, data protection, and information security.
We enable these organizations to engage with a valuable and otherwise difficult-to-reach audience, covering an increasing number of specialized medical professionals and enabling targeted outreach. • We benefit from powerful network effects.
The scale and strength of our network have made us a strategic collaborator of choice for pharmaceutical manufacturers and health systems. We enable these organizations to engage with a valuable and otherwise difficult-to-reach audience, covering an increasing number of specialized medical professionals and enabling targeted outreach. • We benefit from powerful network effects.
Our direct sales organization also reaches customers through indirect channels, such as third-party marketing agencies utilized by our pharmaceutical and health system customers. The direct sales organization is supported by marketing and customer success specialists. We generate customer leads, accelerate sales opportunities, and build brand awareness through our marketing programs, both digitally and offline.
The direct sales organization is supported by marketing and customer success specialists. We generate customer leads, accelerate sales opportunities, and build brand awareness through our marketing programs, both digitally and offline.
Newsfeed Our newsfeed serves as the personalized, curated home screen for each member when they sign on to the Doximity platform. We leverage artificial intelligence, or AI, including machine learning, or ML, to create a personalized and curated newsfeed for each of our members.
We leverage artificial intelligence, or AI, including machine learning, or ML, to create a personalized and curated newsfeed for each of our members.
We provide our members with capabilities specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, monitor their work schedules, and manage their careers.
We provide our members with digital tools specifically built for medicine, enabling our members to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits.
For example, the laws of the State of California, in which we operate, are more restrictive than HIPAA, including the provisions of the California Consumer Privacy Act, or CCPA, which went into effect January 1, 2020, and the California Privacy Act, or CPRA, which went into effect on January 1, 2023, and significantly modified the CCPA.
For example, the laws of the State of California, in which we operate, are more restrictive than HIPAA, including the provisions of the California Consumer Privacy Act and the California Privacy Act.
Built on top of a modern software stack that ensures rapid scalability and enterprise-grade reliability, our tools allow doctors to communicate via messages, voice, and video—and their patients do not need to install an app to be connected.
Built on top of a modern software stack that ensures rapid scalability and enterprise-grade reliability, our tools allow doctors to manage their schedules, streamline documentation and administrative paperwork, and connect with patients via messages, voice, and video.
Any third party intellectual property claims against us could significantly increase our expenses and could have a significant and negative impact on our business, results of operations, and financial condition.
Any third party intellectual property claims against us could significantly increase our expenses and could have a significant and negative impact on our business, results of operations, and financial condition. Seasonality Historically, we have experienced some seasonality based on the timing of marketing programs, subscription launches on our platform and budgetary timing of purchases of additional modules.
Health system customers also have the opportunity to brand the user and patient experience as well as leverage their own security and HIPAA contractual requirements to create consistent protocols for use. Our health system team can also integrate Dialer into our customer's electronic medical record system so that their users can access Dialer directly within their existing clinical workflows.
Health system customers also have the opportunity to brand the user and patient experience as well as leverage their own security and HIPAA contractual requirements to create consistent protocols for use.
We also have a tech-enabled, higher-touch Hiring Solution called Curative Talent, combining Doximity’s data science and intelligence with the service of Curative’s customer-focused recruiters. Our account managers at Curative work with health systems to source both locum tenens and permanent staffing, leveraging our platform and providing a higher level of support on an ongoing basis than our self-service Hiring Solutions.
Our account managers at Curative Talent work with health systems to source both locum tenens and permanent staffing, leveraging our platform and providing a higher level of support on an ongoing basis than our self-service Hiring Solutions. Health systems contract staffing placements directly with Curative Talent on an hourly-fee or a placement-fee basis.
We do not accept fees or payments from hospitals or medical residency programs to impact their ranking or visibility on Residency Navigator. Residency Navigator serves as a relationship funnel for new members at the beginning of their medical careers. Over 90% of graduating U.S. medical students join Doximity to use tools including Residency Navigator before earning their medical degree.
Residency Navigator serves as a relationship funnel for new members at the beginning of their medical careers. Over 90% of graduating U.S. medical students join Doximity to use tools including Residency Navigator before earning their medical degree. Newsfeed Our newsfeed serves as the personalized, curated home screen for each member when they sign on to the Doximity platform.
We verify the identities and credentials of our medical professionals through integration with third-party databases. In addition, our communications solutions are HIPAA compliant, providing medical professionals with a critical platform for protected communications. • We have the largest digital network of medical professionals.
In addition, our communications solutions are HIPAA-compliant, providing medical professionals with a critical platform for protected communications. • We have the largest digital network of medical professionals. Our members have the broadest available range of professional connections and networking opportunities through our platform, and we believe we have become the primary physician-to-physician connectivity medium.
Consumers on the platform would also create a significant value opportunity for our customers. • Consider strategic acquisitions to expand our platform capabilities . In the past, we have selectively used mergers and acquisitions to accelerate our product roadmap to bring medical professionals and customers more complete solutions and increase demand for our products.
In the past, we have selectively used mergers and acquisitions to accelerate our product roadmap to bring medical professionals and customers more complete solutions and increase demand for our products, such as our acquisitions of Curative Talent and AMiON in recent years.
Sales and Marketing We employ a direct sales organization composed of highly trained team members. The sales organization is segmented primarily by customer type. For example, there is one enterprise-focused team concentrating on pharmaceutical manufacturers and another concentrating on health systems.
The sales organization is segmented primarily by customer type. For example, there is one enterprise-focused team concentrating on pharmaceutical manufacturers and another concentrating on health systems. Our direct sales organization also reaches customers through indirect channels, such as third-party marketing agencies utilized by our pharmaceutical and health system customers.
Members beginning their medical careers can discover and compare training programs across the country using Residency Navigator, a tool that provides a transparent look into U.S. medical residency programs, powered by peer nominations, ratings, and firsthand reviews, giving medical students the information they need to navigate their future in medicine and to help choose the right program for their career goals.
Members beginning their medical careers can discover and compare training programs across the country using Residency Navigator, a tool that provides a transparent look into U.S. medical residency programs.
Productivity Members of our platform are able to access our productivity tools, a suite of Health Insurance Portability and Accountability Act, or HIPAA, compliant communication and digital workflow tools that are designed with their needs in mind to make their daily workflows more efficient.
Sponsored content is developed in collaboration with our customer success team to ensure they meet the high quality standards of our community. Productivity Members of our platform are able to access our suite of communication and digital workflow tools that are designed to make their daily workflows more efficient, all in a HIPAA-compliant environment.
Our principal executive offices are located at 500 3rd Street, Suite 510, San Francisco, California 94107, and our telephone number is (650) 549-4330.
Corporate Information We were incorporated in the state of Delaware in April 2010 as 3MD Communications, Inc. and we subsequently changed the name to Doximity, Inc. in June 2010. Our principal executive offices are located at 500 3rd Street, Suite 510, San Francisco, California 94107, and our telephone number is (650) 549-4330.
Health systems contract staffing placements directly with Curative on an hourly-fee or a placement-fee basis. Telehealth Solutions for Health Systems We provide Dialer Enterprise to health systems and hospitals seeking an accessible and powerful telehealth solution. The organic adoption of our direct-to-member offerings—Dialer Free and Dialer Pro— is an important factor driving our Enterprise offerings.
Productivity Solutions for Health Systems We offer the following productivity products as enterprise-level solutions to health systems and hospitals: • Telehealth . Dialer Enterprise provides health systems and hospitals an accessible and powerful telehealth solution. The organic adoption of our direct-to-member offerings, such as Dialer Pro, is an important factor driving our 6 Table of Contents Enterprise offerings.
Medical professional engagement with our platform increases as the breadth and utility of our tools expands, attracting even more members and driving broader and more effective communication and collaboration among healthcare professionals. This also drives greater value for our pharmaceutical and health system customers that seek to interact with specific groups of physicians.
The ecosystem we have created in the medical community benefits from powerful network effects. Medical professional engagement with our platform increases as the breadth and utility of our tools expands, attracting even more members and driving broader and more effective communication and collaboration among healthcare professionals.
We continue to look for opportunities to sell solutions that build on our Telehealth offering. • Grow our patient-facing tools. Patients can search for the right doctor or hospital for their needs through our collaboration with the Doctor Finder tool of U.S.
With the recent addition of our Doximity GPT enterprise offering, we are expanding our portfolio of enterprise clients, and there is still ample whitespace ahead of us. • Grow our patient-facing tools. Patients can search for the right doctor or hospital for their needs through our collaboration with the Doctor Finder tool of U.S.
The Doximity messaging functionality enables members to collaborate securely regarding patient consultations and coordinate care across multiple care team members, specialists, systems, or locations. • Dialer .
The Doximity messaging functionality enables members to collaborate in a HIPAA-compliant manner regarding patient consultations and coordinate care across multiple care team members, specialists, systems, or locations. • Telehealth . Our members can connect with their patients through our Dialer telehealth products either directly or through Dialer Enterprise, which is available for purchase by health systems and hospitals.
Videos are designed to be brief, relevant and eye-catching to disseminate knowledge without wasting a physician’s time. • Continuing Medical Education, or CME, credit. Our platform automatically tracks the articles that our members read, logging eligible CME credit for them as they go. 4 Table of Contents • Peer and colleague updates.
Videos are designed to be brief, relevant and eye-catching to disseminate knowledge without wasting a physician’s time or disrupting their clinical workflow. • Peer and colleague updates.
We compete with large healthcare staffing companies as well as smaller, more regionally focused companies. ◦ Telehealth: We compete with providers of communication solutions, such as Zoom Video Communications and Microsoft Teams.
We compete with large healthcare staffing companies as well as smaller, more regionally focused companies. ◦ Health System IT Budgets: We compete with providers of various solutions that aim to improve the productivity of the information technology services inside of health systems.
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Our “Telehealth Solutions”, which are software tools that include voice and video Dialer, are designed to easily connect patients with care providers. The ecosystem we have created in the medical community benefits from powerful network effects.
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Hiring Solutions also includes Curative Talent, our personalized physician staffing firm that combines Doximity’s data science and intelligence with an experienced team of physician recruiters. Our “Productivity Solutions,” which include our telehealth, on-call scheduling, and AI-supported medical correspondence tools, are designed to help clinicians streamline their clinical workflow and easily connect with patients and colleagues.
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Sponsored content is developed in collaboration with our customer success team to ensure they meet the high quality standards of our community.
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This also drives greater value for our pharmaceutical and health system customers seeking to interact with specific groups of physicians.
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Our members can connect with their patients through our Dialer telehealth feature: Dialer Free is available for free to verified healthcare provider members, Dialer Pro is a paid version with some enhanced capabilities, and Dialer Enterprise is available for purchase by health systems and hospitals.
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Powered by peer nominations, ratings, and firsthand reviews, Residency Navigator gives medical students the information they need to navigate their future in medicine and to help choose the right program for their career goals. We do not accept fees or payments from hospitals or medical residency programs to impact their ranking or visibility on Residency Navigator.
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Our sponsored modules can be categorized as Awareness, Interactivity, and Peer, as follows: • Awareness: sponsored modules that generate awareness and build name recognition, such as text and video articles.
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Dialer also includes a no-reply texting feature, which allows medical professionals to quickly send HIPAA-compliant no-reply text messages to their patients, without disclosing their personal phone number. • AI Writing Assistant.
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Dialer Enterprise is sold as a subscription, with pricing based on the size of the health system. 6 Table of Contents Scheduling Capabilities for Health Systems We also offer a shift scheduling service to health systems through our acquisition of AMiON, which closed on April 1, 2022.
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Doximity GPT, our HIPAA-compliant generative AI writing assistant, helps physicians and other medical professionals reclaim the time they spend on administrative writing tasks, such as drafting letters of patient support, insurance appeals, patient education materials, letters of recommendation, and even grant applications. Doximity GPT integrates with our HIPAA-compliant digital fax to enable easy transmission of the final document.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur service is vulnerable to threat actors, software bugs, malicious code (such as computer viruses and internet worms), personnel theft or misuse, break-ins, phishing attacks, denial-of-service attacks (including credential stuffing), ransomware attacks, natural disasters, terrorism, war, telecommunication and electrical failures, server malfunction, software or hardware failures, loss of data or other computer assets, adware, or other similar issues or other attacks or similar disruptions, any of which could lead to system interruptions, delays, or shutdowns, causing loss of critical data or the unauthorized access of data.
Biggest changeOur service is vulnerable to threat actors, software bugs, malicious code (such as computer viruses and internet worms), personnel theft or misuse, break-ins, phishing attacks, denial-of-service attacks (including credential stuffing), ransomware attacks, natural disasters, terrorism, war, telecommunication and electrical failures, server malfunction, software or hardware failures, loss of data or other computer assets, adware, or other similar issues or other attacks or similar disruptions, any of which could lead to system interruptions, delays, or shutdowns, causing loss of critical data or the unauthorized access to or acquisition of data. 23 Table of Content s We may be required to expend significant resources, fundamentally change our business activities and practices, or modify our services, software, operations, or information technology in an effort to protect against security breaches, incidents, or compromises and to mitigate, detect, and remediate actual and potential vulnerabilities.
In addition, if the third-party software we utilize has errors, security vulnerabilities, or otherwise malfunctions, the functionality of our solutions may be negatively impacted and our business may suffer. 28 Table of Content s We rely on software-as-a-service, or SaaS, technologies from third parties.
In addition, if the third-party software 28 Table of Content s we utilize has errors, security vulnerabilities, or otherwise malfunctions, the functionality of our solutions may be negatively impacted and our business may suffer. We rely on software-as-a-service, or SaaS, technologies from third parties.
Our policies and practices may not be sufficient to withstand the impact of such events which could therefore could adversely affect our business, financial condition, or results of operations.
Our policies and practices may not be sufficient to withstand the impact of such events which could therefore adversely affect our business, financial condition, or results of operations.
Risks Related to the Healthcare Industry The healthcare regulatory and political framework is uncertain and evolving. Healthcare laws and regulations are rapidly evolving and may change significantly in the future, which could adversely affect our financial condition and results of operations. Certain regulatory changes that have occurred in response to the COVID-19 pandemic, have created opportunities for us.
Risks Related to the Healthcare Industry The healthcare regulatory and political framework is uncertain and evolving. Healthcare laws and regulations are rapidly evolving and may change significantly in the future, which could adversely affect our financial condition and results of operations. Certain regulatory changes that have occurred in response to the COVID-19 pandemic created opportunities for us.
The market price of our Class A common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our financial conditions and results of operations; • the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections; • failure of securities analysts to initiate or maintain coverage of our company, changes in financial estimates or ratings by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors; • announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, results of operations, or capital commitments; • changes in stock market valuations and operating performance of other healthcare and technology companies generally, or those in our industry in particular; • price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole; • changes in our board of directors or management; • sales of large blocks of our Class A common stock, including sales by certain affiliates of Jeff Tangney, Emergence Capital Partners II, L.P., or Emergence Capital Partners, or our executive officers and directors; • lawsuits threatened or filed against us; • anticipated or actual changes in laws, regulations, or government policies applicable to our business; • changes in our capital structure, such as future issuances of debt or equity securities; • short sales, hedging, and other derivative transactions involving our capital stock; • general economic conditions in the United States, including inflation and the interest rate environment and the impact of any U.S. federal government debt default due to a failure to increase the debt ceiling; • “flash crashes,” “freeze flashes,” or other glitches that disrupt trading on the securities exchange on which we are listed; • other global economic or political events or factors, including those resulting from war, pandemics, incidents of terrorism, or responses to these events; and • the other factors described in the sections of this Annual Report on Form 10-K titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” The stock market has recently experienced extreme price and volume fluctuations.
The market price of our Class A common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our financial conditions and results of operations; • the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections; • failure of securities analysts to initiate or maintain coverage of our company, changes in financial estimates or ratings by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors; • announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, results of operations, or capital commitments; • changes in stock market valuations and operating performance of other healthcare and technology companies generally, or those in our industry in particular; • price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole; • changes in our board of directors or management; • sales of large blocks of our Class A common stock, including sales by certain affiliates of Jeff Tangney, Emergence Capital Partners II, L.P., or Emergence Capital Partners, or our executive officers and directors; • lawsuits threatened or filed against us; • anticipated or actual changes in laws, regulations, or government policies applicable to our business; • changes in our capital structure, such as future issuances of debt or equity securities; • short sales, hedging, and other derivative transactions involving our capital stock; • general economic conditions in the United States, including inflation and the interest rate environment and the impact of any U.S. federal government debt default due to a failure to increase the debt ceiling; • “flash crashes,” “freeze flashes,” or other glitches that disrupt trading on the securities exchange on which we are listed; • other global economic or political events or factors, including those resulting from war, pandemics, incidents of terrorism, or responses to these events; and • the other factors described in the sections of this Annual Report on Form 10-K titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” The stock market has experienced extreme price and volume fluctuations.
Some of the important factors that could cause our revenue and operating results to fluctuate from quarter to quarter include: • our ability to increase sales of our solutions to new customers and expand sales of additional solutions to our existing customers; • the extent to which existing customers renew their agreements with us and the timing and terms of those renewals; • the termination or renegotiation by our significant customers of their agreements with us; • the entrance of new competitors in our market whether by established companies or new companies; • changes in our pricing policies or those of our competitors; 20 Table of Content s • the cost of investing in our technology infrastructure, which may be greater than we anticipate; • our ability to maintain or increase our member base and member engagement; • disruptions or outages in our website availability, actual or perceived breaches of privacy, and compromises of our member data; and • general industry and macroeconomic conditions which would adversely impact sales.
Some of the important factors that could cause our revenue and operating results to fluctuate from quarter to quarter include: • our ability to increase sales of our solutions to new customers and expand sales of additional solutions to our existing customers; • the extent to which existing customers renew their agreements with us and the timing and terms of those renewals; • the termination or renegotiation by our significant customers of their agreements with us; • the entrance of new competitors in our market whether by established companies or new companies; 20 Table of Content s • changes in our pricing policies or those of our competitors; • the cost of investing in our technology infrastructure, which may be greater than we anticipate; • our ability to maintain or increase our member base and member engagement; • disruptions or outages in our website availability, actual or perceived breaches of privacy, and compromises of our member data; and • general industry and macroeconomic conditions which could adversely impact sales.
Our revenue is relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could slow the growth rate of our revenue or cause our revenue to decline. For the fiscal year ended March 31, 2023 and 2022, no customer accounted for 10% or more of total revenue.
Our revenue is relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could slow the growth rate of our revenue or cause our revenue to decline. For the fiscal year ended March 31, 2024, 2023 and 2022, no customer accounted for 10% or more of total revenue.
We incur significant expenses in developing our technology, marketing, and providing the tools and solutions we offer, and acquiring customers. Our costs may increase due to our continued new product development and general administrative expenses, such as legal and accounting expenses related to becoming and being a public company.
We incur significant expenses in developing our technology, marketing, and providing the tools and solutions we offer, and acquiring members and customers. Our costs may increase due to our continued new product development and general administrative expenses, such as legal and accounting expenses related to becoming and being a public company.
Recent volatility in capital markets and lower market prices for many securities may, among other things, affect our ability to access new capital on terms favorable to us, if at all.
Volatility in capital markets and lower market prices for many securities may, among other things, affect our ability to access new capital on terms favorable to us, if at all.
As a result, unauthorized access or security breaches as a result of third-party action (e.g., cyber-attacks), employee error, product defect, malfeasance, or other factors could result in the loss of information, inappropriate use of or access to information, service interruption, service degradation, outages, service level credits, litigation, indemnity obligations, damage to our reputation, and other liability.
As a result, unauthorized access, security breaches, incidents, or compromises as a result of third-party action (e.g., cyber-attacks), employee error, product defect, malfeasance, or other factors could result in the loss of information, inappropriate use of or access to information, service interruption, service degradation, outages, service level credits, litigation, indemnity obligations, damage to our reputation, and other liability.
The recovery systems, security protocols, network protection mechanisms, and other security measures that we (and our third parties) have integrated into our platform, systems, networks, and physical facilities, which are designed to protect against, detect, and minimize Security Breaches, may not be adequate to prevent or detect service interruption, system failure, or data loss.
The recovery systems, security protocols, network protection mechanisms, and other security measures that we (and our third parties) have integrated into our platform, systems, networks, and physical facilities, which are designed to protect against, detect, and minimize security breaches, incidents, or compromises, may not be adequate to prevent or detect service interruption, system failure, or data loss.
Based on an assessment of our historical ownership changes through March 31, 2023, we do not anticipate a current limitation on the tax attributes. Our ability to use NOLs and other tax attributes to reduce future taxable income and liabilities may be subject to limitations as a result of ownership changes that may occur in the future.
Based on an assessment of our historical ownership changes through March 31, 2024, we do not anticipate a current limitation on the tax attributes. Our ability to use NOLs and other tax attributes to reduce future taxable income and liabilities may be subject to limitations as a result of ownership changes that may occur in the future.
Similarly, Google provides us with storage capacity and certain collaboration tools, and also may non-renew its agreement by providing 15 days notice prior to the end of the then-current term. Some of our other vendor agreements may be unilaterally terminated by the counterparty for convenience.
Similarly, Google provides us with storage capacity and certain collaboration tools, and also may non-renew its agreement by providing 15 days’ notice prior to the end of the then-current term. Some of our other vendor agreements may be unilaterally terminated by the counterparty for convenience.
Under the HITECH Act, as a Business Associate, we may also be liable for privacy and security breaches and failures of our subcontractors. Even though we provide for appropriate protections through our agreements with our subcontractors, we still have limited control over their actions and practices.
Under the HITECH Act, as a Business Associate, we may also be liable for privacy and security breaches and failures of our subcontractors. Even though we believe that we provide for appropriate protections through our agreements with our subcontractors, we still have limited control over their actions and practices.
Finally, for our Telehealth Solutions, we may not be able to retain existing customers or attract new customers if we fail to provide high quality solutions, if customers are unable to realize the value of our solutions, or if we are not able to measure and demonstrate the value that our solutions provide.
Finally, for our Productivity Solutions, we may not be able to retain existing customers or attract new customers if we fail to provide high quality solutions, if customers are unable to realize the value of our solutions, or if we are not able to measure and demonstrate the value that our solutions provide.
Applicable Data Protection Laws, Privacy Policies, or Data Protection Obligations may require us to notify affected individuals, regulators, customers, credit reporting agencies, and others in the event of a Security Breach.
Applicable Data Protection Laws, Privacy Policies, or Data Protection Obligations may require us to notify affected individuals, regulators, customers, credit reporting agencies, and others in the event of a security breach, incident, or compromise.
Our business would be harmed if the providers discontinue or limit our access to their platforms or marketplaces; the platforms or marketplaces decline in popularity; the platforms modify their algorithms, communication channels available to developers, respective terms of service or other policies, including fees; the providers adopt changes or updates to their technology that impede integration with 36 Table of Content s other software systems or otherwise require us to modify our technology or update our apps in order to ensure that consumers can continue to access and use our platform.
Our business would be harmed if the providers discontinue or limit our access to their platforms or marketplaces; the platforms or marketplaces decline in popularity; the platforms modify their algorithms, communication channels available to developers, respective terms of service or other policies, including fees; the providers adopt changes or updates to their technology that impede integration with other software systems or otherwise require us to modify our technology or update our apps in order to ensure that consumers can continue to access and use our platform.
The actual or perceived failure to address or comply with applicable Data Protection Laws by us or our customers, partners, or vendors could increase our compliance and operational costs, expose us to regulatory scrutiny, actions, fines, and penalties, result in reputational harm, lead to a loss of customers, reduce the use of our services, result in litigation and liability, have a material adverse effect on our business operations or financial results, or otherwise result in other material harm to our business.
The actual or perceived failure to address or comply with applicable Data Protection Laws by us or our customers, partners, or vendors, or any enforcement actions against us or our customers, partners, or vendors regarding any Data Protection Laws, could increase our compliance and operational costs, expose us to regulatory scrutiny, actions, fines, and penalties, result in reputational harm, lead to a loss of customers, reduce the use of our services, result in litigation and liability, have a material adverse effect on our business operations or financial results, or otherwise result in other material harm to our business.
This expansion increases the complexity of our business and places significant strain on our management, personnel, operations, systems, technical performance, financial resources, and internal financial control and reporting functions. We may not be able to manage growth effectively, which could damage our reputation, limit our growth, and negatively affect our operating results.
Growth in our business increases the complexity of our operations and places significant strain on our management, personnel, systems, technical performance, financial resources, and internal financial control and reporting functions. We may not be able to manage growth effectively, which could damage our reputation, limit our growth, and negatively affect our operating results.
Resolution of these types of matters against us may result in our having to pay significant fines, judgments, or settlements, which, if uninsured, or if the fines, judgments, and settlements exceed insured levels, could adversely impact our earnings and cash flows, thereby having a material adverse effect on our business, financial condition, results of operations, cash flow, and per share trading price of our Class A common stock.
Resolution of these types of matters against us may result in our having to pay significant fines, judgments, or settlements, which, if uninsured, or if the fines, judgments, and settlements exceed insured 26 Table of Content s levels, could adversely impact our earnings and cash flows, thereby having a material adverse effect on our business, financial condition, results of operations, cash flow, and per share trading price of our Class A common stock.
The regulatory framework for privacy, data protection, and information security issues worldwide is evolving and is likely to remain in flux for the foreseeable future. Various governmental and consumer agencies have also called for new regulations and changes in industry practices. Practices regarding privacy, data protection, and information security have recently come under increased public and regulatory scrutiny.
The regulatory framework for privacy, data protection, and information security issues worldwide is evolving and is likely to remain in flux for the foreseeable future. Various governmental and consumer agencies have also called for new regulations and changes in industry practices. Practices regarding privacy, data protection, and information security have been under increased public and regulatory scrutiny.
The terms of various open source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to market our solutions.
The terms of various open source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated 35 Table of Content s conditions or restrictions on our ability to market our solutions.
Applicable Data Protection Laws, Privacy Policies, and Data Protection Obligations may require us to implement specific security measures or use industry-standard or reasonable measures to protect against Security Breaches.
Applicable Data Protection Laws, Privacy Policies, and Data Protection Obligations may require us to implement specific security measures or use industry-standard or reasonable measures to protect against security breaches, incidents, or compromises.
If we lose such interoperability, we experience difficulties or increased costs in integrating our offerings into alternative devices or systems, or manufacturers or operating systems elect not to include our offerings, make changes that degrade the functionality of our offerings, or give preferential treatment to competitive products, the growth of our business, results of operations, and financial condition could be materially adversely affected.
If we lose such interoperability, we experience difficulties or increased costs in integrating our offerings into alternative devices or systems, or manufacturers or operating systems elect not to include our offerings, make changes that degrade the functionality of our offerings, or give preferential treatment to competitive products, 24 Table of Content s the growth of our business, results of operations, and financial condition could be materially adversely affected.
Our effective tax rates could be affected by numerous factors, such as changes in tax, accounting, and other laws, regulations, administrative practices, principles, and interpretations, the mix and level of earnings in a given taxing jurisdiction, or our ownership or capital structures. 25 Table of Content s Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
Our effective tax rates could be affected by numerous factors, such as changes in tax, accounting, and other laws, regulations, administrative practices, principles, and interpretations, the mix and level of earnings in a given taxing jurisdiction, or our ownership or capital structures. Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
Also, while we employ several different methodologies to assess potential business opportunities, the new businesses may not meet or exceed our expectations. 27 Table of Content s We may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships with third-parties that may not result in the development of commercially viable solutions or the generation of significant future revenue.
Also, while we employ several different methodologies to assess potential business opportunities, the new businesses may not meet or exceed our expectations. We may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships with third-parties that may not result in the development of commercially viable solutions or the generation of significant future revenue.
Since launching our platform in fiscal 2012, we have experienced rapid growth and we continue to rapidly and significantly expand our operations. While we have experienced significant revenue growth in prior periods, it is not indicative of our future revenue growth. We expect our revenue growth rate may decline.
Since launching our platform in fiscal 2012, we have experienced rapid growth and we continue to rapidly and significantly expand our operations. While we have experienced significant revenue growth in prior periods, it is not indicative of our future revenue growth. Our revenue growth rate has not been consistent, and we expect our revenue growth rate may decline.
The impact of any pandemic, epidemic, or outbreak of an infectious disease, including COVID-19, on the needs, expectations, and spending levels of our customers could impact our ability to maintain or grow our business and, as a result, our operating and financial results could be adversely affected.
The impact of any pandemic, epidemic, or outbreak of an infectious disease on the needs, expectations, and spending levels of our customers could impact our ability to maintain or grow our business and, as a result, our operating and financial results could be adversely affected.
The loss of the business of a significant brand could damage our relationship with that customer 19 Table of Content s and its other brands, and our revenue, operating results, financial condition, business, and future growth potential may be adversely affected. We calculate certain operational metrics using internal systems and tools and do not independently verify such metrics.
The loss of the business of a significant brand could damage our relationship with that customer and its other brands, and our revenue, operating results, financial condition, business, and future growth potential may be adversely affected. We calculate certain operational metrics using internal systems and tools and do not independently verify such metrics.
In the event of a major earthquake, hurricane, fire, cyber-attack, major political disruption, any U.S. federal government debt default due to a failure to increase the debt ceiling, war (including the ongoing conflict in Ukraine), terrorist attack, disease (including the COVID-19 pandemic or any other pandemic or epidemic), power loss, telecommunications failure, or other catastrophic events, we may be unable to continue our operations, in part or in whole, and may endure reputational harm, breaches of data security, and loss of critical data, all of which could harm our business, results of operations, and financial condition.
In the event of a major earthquake, hurricane, fire, cyber-attack, major political disruption, any U.S. federal government debt default due to a failure to increase the debt ceiling, war, terrorist attack, disease, pandemic or epidemic, power loss, telecommunications failure, or other catastrophic events, we may be unable to continue our operations, in part or in whole, and may endure reputational harm, breaches of data security, and loss of critical data, all of which could harm our business, results of operations, and financial condition.
Risks Related to Intellectual Property 32 Table of Content s We may not be able to halt the operations of entities that copy our intellectual property or that aggregate our data as well as data from other companies, including social networks, or copycat online services that may misappropriate our data. These activities could harm our brand and our business.
Risks Related to Intellectual Property We may not be able to halt the operations of entities that copy our intellectual property or that aggregate our data as well as data from other companies, including social networks, or copycat online services that may misappropriate our data. These activities could harm our brand and our business.
Our use of third-party technologies exposes us to increased risks, including, but not limited to, risks associated with the integration of new technology into our 29 Table of Content s solutions, the diversion of our resources from development of our own proprietary technology, and our inability to generate revenue from licensed technology sufficient to offset associated acquisition and maintenance costs.
Our use of third-party technologies exposes us to increased risks, including, but not limited to, risks associated with the integration of new technology into our solutions, the diversion of our resources from development of our own proprietary technology, and our inability to generate revenue from licensed technology sufficient to offset associated acquisition and maintenance costs.
Our business could be disrupted by a pandemic, epidemic, or outbreak of an infectious disease. Any pandemic, endemic or other infectious disease may adversely affect our business, results of operations, and financial condition by causing us to change the way we or our customers or members conduct business and engage with us.
Our business could be disrupted by a pandemic, epidemic, or outbreak of an infectious disease. 30 Table of Content s Any pandemic, endemic or other infectious disease may adversely affect our business, results of operations, and financial condition by causing us to change the way we or our customers or members conduct business and engage with us.
As an example, the COVID-19 pandemic, including its variants, affected our business operations, including, among other impacts, 30 Table of Content s causing the majority of our employees to work from home, impacting the way our customers engage with our business, and influencing the regulatory framework in which we operate.
As an example, the COVID-19 pandemic, including its variants, affected our business operations, including, among other impacts, causing the majority of our employees to work from home, impacting the way our customers engage with our business, and influencing the regulatory framework in which we operate.
As our customers’ businesses respond to market dynamics, financial pressures, and regulatory changes or delays impacting their businesses, and as our customers make strategic business decisions regarding how to market their offerings, our 17 Table of Content s customers seek to, and we expect will continue to seek to, amend the terms of their arrangements with us.
As our customers’ businesses respond to market dynamics, financial pressures, and regulatory changes or delays impacting their businesses, and as our customers make strategic business decisions regarding how to market their offerings, our customers seek to, and we expect will continue to seek to, amend the terms of their arrangements with us.
New or amended Data Protection Laws, and changes in the interpretation of existing Data Protection Laws and our Data Protection Obligations, could impair our, our customers’, our partners’, or our vendors’ ability to Process personal information, 22 Table of Content s which could have a material adverse effect on our business, financial condition, and results of operations.
New or amended Data Protection Laws, and changes in the interpretation of existing Data Protection Laws and our Data Protection Obligations, could impair our, our customers’, our partners’, or our vendors’ ability to Process personal information, which could have a material adverse effect on our business, financial condition, and results of operations.
Our employees, executive officers, and directors also 40 Table of Content s may buy or sell additional shares outside of a Rule 10b5-1 trading plan when they are not in possession of material, nonpublic information, subject to the Rule 144 requirements referred to above.
Our employees, executive officers, and directors also may buy or sell additional shares outside of a Rule 10b5-1 trading plan when they are not in possession of material, nonpublic information, subject to the Rule 144 requirements referred to above.
The success of our Telehealth Solutions will depend to a substantial extent on the willingness of our members to use, and to increase the frequency and extent of their utilization of, our network, as well as on our ability to demonstrate the value of telehealth to employers, health plans, government agencies, and other purchasers of healthcare for beneficiaries.
The success of our Productivity Solutions will depend to a substantial extent on the willingness of our members to use, and to increase the frequency and extent of their utilization of, our network, as well as on our ability to demonstrate the value of these offerings to employers, health plans, government agencies, and other purchasers of healthcare for beneficiaries.
Inability of our customers to do so could affect the marketability of our solutions and services or our compliance with our customer contracts, or even expose us to direct liability under the theory that we had assisted our customers in a violation of healthcare laws or regulations.
Inability of our customers to 37 Table of Content s do so could affect the marketability of our solutions and services or our compliance with our customer contracts, or even expose us to direct liability under the theory that we had assisted our customers in a violation of healthcare laws or regulations.
Our Class B common stock has ten votes per share, and our Class A common stock has one vote per share. Stockholders who hold shares of Class B common stock, including our executive officers and directors and their affiliates, together hold approximately 86% of the voting power of our outstanding capital stock as of March 31, 2023.
Our Class B common stock has ten votes per share, and our Class A common stock has one vote per share. Stockholders who hold shares of Class B common stock, including our executive officers and directors and their affiliates, together hold approximately 83% of the voting power of our outstanding capital stock as of March 31, 2024.
Recent volatility in capital markets and lower market prices for many securities may affect our ability to access new capital through sales of shares of our Class A common stock or the issuance of indebtedness, which may harm our liquidity, limit 26 Table of Content s our ability to grow our business, pursue acquisitions, or improve our operating infrastructure and restrict our ability to compete in our markets.
Volatility in capital markets and lower market prices for many securities may affect our ability to access new capital through sales of shares of our Class A common stock or the issuance of indebtedness, which may harm our liquidity, limit our ability to grow our business, pursue acquisitions, or improve our operating infrastructure and restrict our ability to compete in our markets.
In addition, OCR has announced that they will not impose penalties for noncompliance with the regulatory requirements under the HIPAA Rules for covered healthcare providers in connection with good faith provision of telehealth during the COVID-19 nationwide public health emergency.
In addition, OCR had announced that they would not impose penalties for noncompliance with the regulatory requirements under the HIPAA Rules for covered healthcare providers in connection with good faith provision of telehealth during the COVID-19 nationwide public health emergency.
In addition to risks related to license requirements, usage of open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide non-infringement warranties or warranties related to the 35 Table of Content s performance or suitability of the software.
In addition to risks related to license requirements, usage of open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide non-infringement warranties or warranties related to the performance or suitability of the software.
The enactment of the CCPA has prompted similar legislative developments in other states, which could create the potential for a patchwork of overlapping but different state laws. The federal government is also considering comprehensive privacy legislation.
The enactment of the 22 Table of Content s CCPA has prompted similar legislative developments in other states, which could create the potential for a patchwork of overlapping but different state laws. The federal government is also considering comprehensive privacy legislation.
However, regulatory authorities or other parties, including our providers, may assert that we are engaged in the corporate practice of medicine or that our contractual 37 Table of Content s arrangements with our provider customers constitute unlawful fee splitting.
However, regulatory authorities or other parties, including our providers, may assert that we are engaged in the corporate practice of medicine or that our contractual arrangements with our provider customers constitute unlawful fee-splitting.
Even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm may conclude that there are material weaknesses with respect to our internal controls or the level at which our internal controls are documented, designed, implemented, or reviewed.
Even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm may conclude that there are material weaknesses with respect to our internal controls or the level at which our internal controls are documented, 32 Table of Content s designed, implemented, or reviewed.
If we require a third-party license, it may not be available on reasonable terms or at all, and we may have to pay substantial royalties, upfront fees, or grant cross-licenses to intellectual property rights for our solutions and services.
If we require a third-party license, it may not be available on reasonable terms or at all, and we may have to pay substantial royalties, upfront fees, or grant cross-licenses to intellectual property rights for our solutions 33 Table of Content s and services.
As a result, the expansion and prospects of our business and our apps depend on our continued relationships with these providers and any other emerging platform providers that are widely adopted by consumers.
As a result, the expansion and 36 Table of Content s prospects of our business and our apps depend on our continued relationships with these providers and any other emerging platform providers that are widely adopted by consumers.
Artificial intelligence (AI) and machine learning (ML) serve a key role in many of our services. As with many technological innovations, AI and ML present risks and challenges that could affect its adoption, and therefore our business.
AI and ML serve a key role in many of our services. As with many technological innovations, AI and ML present risks and challenges that could affect its adoption, and therefore our business.
Failure to address AI and ML ethics 24 Table of Content s issues by us or others in our industry could undermine public confidence in AI and ML and slow adoption of AI and ML in our products and services.
Failure to address AI and ML ethics issues by us or others in our industry could undermine public confidence in AI and ML and slow adoption of AI and ML in our products and services.
We have encountered and will encounter risks and challenges frequently experienced by growing companies with competitive offerings, such as the risks and uncertainties described in this Annual Report on Form 10-K. In addition, our business is affected by general economic and business conditions around the world, including the impact of the COVID-19 pandemic or any other similar pandemic or epidemic.
We have encountered and will encounter risks and challenges frequently experienced by growing companies with competitive offerings, such as the risks and uncertainties described in this Annual Report on Form 10-K. In addition, our business is affected by general economic and business conditions around the world, including geopolitical and pandemic or epidemic conditions.
While the potential economic impact and the duration of any pandemic, epidemic, or outbreak of an infectious disease, including COVID-19, may be difficult to assess or predict, the widespread COVID-19 pandemic has resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital, which could in the future negatively affect our liquidity.
While the potential economic impact and the duration of any pandemic, epidemic, or outbreak of an infectious disease may be difficult to assess or predict, such events have resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital, which could in the future negatively affect our liquidity.
For example, in the past we have lost marketing spend and associated revenue when a pharmaceutical brand marketed on our platform lost patent protection.
For example, in the past we have lost marketing spend and associated revenue when a pharmaceutical brand marketed on our 19 Table of Content s platform lost patent protection.
As of March 31, 2023, we accumulated $15.3 million of state and no federal net operating loss carryforwards, or NOLs, to reduce future taxable income, portions of which will begin to expire in 2035.
As of March 31, 2024, we accumulated $5.3 million of state net operating loss carryforwards, or NOLs, to reduce future taxable income, portions of which will begin to expire in 2035.
In fiscal 2021, we completed an acquisition of Curative Talent and, on April 1, 2022 we completed the acquisition of the AMiON business, and we may in the future consider opportunities to acquire or make additional investments in new or complementary businesses, technologies, offerings, tools, or solutions, or enter into strategic alliances, that may enhance our capabilities and platform in general, complement our current offerings, or expand the breadth of our markets.
We have completed acquisitions in recent years, including Curative Talent in fiscal 2021 and AMiON in fiscal 2023, and we may in the future consider opportunities to acquire or make additional investments in new or complementary businesses, technologies, offerings, tools, or solutions, or enter into strategic alliances, that may enhance our capabilities and platform in general, complement our current offerings, or expand the breadth of our markets.
The security measures that we and our third-party vendors and subcontractors have in place in an effort to ensure compliance with privacy and data protection laws may not protect our facilities and systems from security breaches, acts of 21 Table of Content s vandalism or theft, computer viruses, misplaced or lost data, programming and human errors, or other similar events.
Furthermore, in the event of a breach as defined by HIPAA, the Business Associate may have to comply with specific reporting requirements under HIPAA regulations. 21 Table of Content s The security measures that we and our third-party vendors and subcontractors have in place in an effort to ensure compliance with privacy and data protection laws may not protect our facilities and systems from security breaches, acts of vandalism or theft, computer viruses, misplaced or lost data, programming and human errors, or other similar events.
Our platform also utilizes artificial intelligence and machine learning technology to provide services, and this technology may be susceptible to cybersecurity threats.
Our platform also utilizes AI to provide services, and this technology may be susceptible to cybersecurity threats.
If a substantial number of data providers were to withdraw or restrict their data, or if they fail to adhere to our quality control standards, and if we are unable to identify and contract with suitable alternative data suppliers and integrate these data sources into our service offerings, our ability to provide solutions and services to our partners would be materially adversely impacted, which could have a material adverse effect on our business, financial condition, and results of operations.
If a substantial number of data providers were to withdraw or restrict their data, or if they fail to adhere to our quality control standards, and if we are unable to identify and contract with suitable alternative data suppliers and integrate these data sources into our service offerings, our ability to provide solutions and services to our partners would be materially adversely impacted, which could have a material adverse effect on our business, financial condition, and results of operations. 29 Table of Content s We also integrate into our proprietary applications and use third-party software to maintain and enhance, among other things, content generation and delivery, and to support our technology infrastructure.
These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors of their choosing and to cause us to take other corporate actions they desire, any of which, under certain circumstances, could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock, and could also affect the price that some investors are willing to pay for our Class A common stock. 41 Table of Content s Our amended and restated bylaws designate specific state or federal courts located as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with us.
These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors of their choosing and to cause us to take other corporate actions they desire, any of which, under certain circumstances, could 41 Table of Content s limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock, and could also affect the price that some investors are willing to pay for our Class A common stock.
We may experience challenges with managing the integration and growth related to these acquisitions or other future acquisitions. The operation and integration of the acquired technologies and business operations may require substantial financial costs and management attention. If we fail to manage such integration processes in a timely and effective manner, our business and financial results may suffer.
We may experience challenges with managing the integration and growth related to these acquisitions or other future acquisitions. The operation and integration of the acquired technologies and business operations may require substantial financial costs and management attention.
Even after the COVID-19 pandemic has subsided, we may experience materially adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or may occur in the future.
Even though the COVID-19 pandemic has been declared to no longer be a public health emergency, we still may experience material adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or may occur in the future.
Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. 31 Table of Content s We operate in a rapidly changing industry.
Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. We operate in a rapidly changing industry. Accordingly, our risk management policies and procedures may not be fully effective to identify, monitor, and manage all the risks our business encounters.
Applicable Data Protection Laws may also include state medical privacy laws, including those related to mental health and substance use treatment, and the provision of healthcare services, as well as federal and state consumer protection laws.
Enforcement actions against us could be costly and could interrupt regular operations, which may adversely affect our business. Applicable Data Protection Laws may also include state medical privacy laws, including those related to mental health and substance use treatment, and the provision of healthcare services, as well as federal and state consumer protection laws.
Specifically, we compete for medical professionals as members against large technology companies that have developed online networking and collaboration tools like LinkedIn, Facebook, Google, and Twitter, in addition to smaller, emerging companies. We also compete to access marketing, hiring, and telehealth budgets of pharmaceutical and health system companies as customers for our Marketing, Hiring, and Telehealth Solutions.
Specifically, we compete for medical professionals as members against large technology companies that have developed online networking and collaboration tools like LinkedIn, Facebook, Google, and X (formerly known as Twitter), in addition to smaller, emerging companies.
The telehealth market is immature and volatile, and if it does not develop, or if it develops more slowly than we expect, if it encounters negative publicity, or if we are not successful in demonstrating and promoting the benefits of our solutions, the growth of our business will be harmed.
Product offerings in our Productivity Solutions category, such as telehealth, are immature and volatile, and if these markets do not develop, develop more slowly than we expect, or encounter negative publicity, or if we are not successful in demonstrating and promoting the benefits of our solutions, the growth of our business will be harmed.
Additionally, certain of our employees, executive officers, and directors have entered into, and may further enter into, Rule 10b5-1 trading plans providing for sales of shares of our Class A common stock from time to time.
These sales could also cause the trading price of our Class A common stock to fall and make it more difficult for you to sell shares of our Class A common stock. 40 Table of Content s Additionally, certain of our employees, executive officers, and directors have entered into, and may further enter into, Rule 10b5-1 trading plans providing for sales of shares of our Class A common stock from time to time.
Litigation is inherently uncertain and any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could adversely affect our business and results of operations. If we fail to maintain, protect, and enforce our intellectual property, our business and results of operations may be harmed.
Litigation is inherently uncertain and any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could 34 Table of Content s adversely affect our business and results of operations.
In fiscal 2023 and 2022, our revenue grew by 22% and 66%, respectively, as compared to the prior years. In addition, our full-time equivalent employee headcount has grown from 887 as of March 31, 2022 to 977 as of March 31, 2023.
For example, in fiscal 2024 and 2023, our revenue grew by 13% and 22%, respectively, as compared to the prior years. Additionally, our full-time equivalent headcount declined from 977 as of March 31, 2023 to 827 as of March 31, 2024.
We are currently assessing the potential impact of these legislative changes on our business. Our ability to limit our liabilities by contract or through insurance may be ineffective or insufficient to cover our future liabilities. We attempt to limit, by contract, our liability for damages arising from our negligence, errors, mistakes, or security breaches.
We are accruing excise tax on net share repurchases as applicable. Our ability to limit our liabilities by contract or through insurance may be ineffective or insufficient to cover our future liabilities. We attempt to limit, by contract, our liability for damages arising from our negligence, errors, mistakes, or security breaches.
The laws of some foreign countries do not protect intellectual property rights to the same extent as the laws of the United States. Many companies have encountered significant problems in protecting and defending intellectual property rights in certain foreign jurisdictions. The legal systems of some countries, particularly developing countries, do not favor the enforcement of intellectual property protection.
If we fail to maintain, protect, and enforce our intellectual property, our business and results of operations may be harmed. The laws of some foreign countries do not protect intellectual property rights to the same extent as the laws of the United States. Many companies have encountered significant problems in protecting and defending intellectual property rights in certain foreign jurisdictions.
We may experience fluctuations in our tax obligations and effective tax rate, which could materially and adversely affect our results of operations. We are subject to U.S. federal and state income taxes.
In addition, we could incur significant costs investigating and defending claims for violating such requirements and, if we are found liable, significant damages. 25 Table of Content s We may experience fluctuations in our tax obligations and effective tax rate, which could materially and adversely affect our results of operations. We are subject to U.S. federal and state income taxes.
In the event that we must modify our operations to comply with future laws, such modifications may undermine our existing and future offerings' attractiveness to customers, and our revenue may decline and our business, financial condition, and results of operations could be adversely affected. 38 Table of Content s Risks Related to Ownership of Our Class A Common Stock Our stock price may be volatile or may decline regardless of our operating performance, resulting in substantial losses for investors of our Class A common stock.
In the event that we must modify our operations to comply with future laws, such modifications may undermine our existing and future offerings' attractiveness to customers, and our revenue may decline and our business, financial condition, and results of operations could be adversely affected.
To the extent that our disclosures about ESG matters increase, we could be criticized for the accuracy, adequacy, or completeness of such disclosures. Our actual or perceived failure to achieve our ESG-related initiatives or commitments could negatively impact our reputation, result in ESG-focused investors not purchasing and holding our stock, or otherwise materially harm our business.
Our actual or perceived failure to achieve our ESG- 31 Table of Content s related initiatives or commitments could negatively impact our reputation, result in ESG-focused investors not purchasing and holding our stock, or otherwise materially harm our business.
Content-related legislation or judicial review may require us to change our solutions or business practices, increase our compliance costs, or otherwise impact our operations or our ability to provide services in certain geographies. In addition, we could incur significant costs investigating and defending claims for violating such requirements and, if we are found liable, significant damages.
Content-related legislation or judicial review may require us to change our solutions or business practices, increase our compliance costs, or otherwise impact our operations or our ability to provide services in certain geographies.
Any similar litigation against us could result in substantial costs, divert management’s attention and resources, and harm our business, financial condition, and results of operations. 39 Table of Content s The dual class structure of our common stock has the effect of concentrating voting control with our executive officers (including our Chief Executive Officer) and directors and their affiliates; this will limit or preclude your ability to influence corporate matters.
The dual class structure of our common stock has the effect of concentrating voting control with our executive officers (including our Chief Executive Officer) and directors and their affiliates; this will limit or preclude your ability to influence corporate matters.
If we cannot or do not obtain a third-party license to the infringed technology, license the technology on reasonable terms, or obtain similar technology from another source, our revenue and earnings could be adversely impacted. 33 Table of Content s In addition, because patent applications can take years to issue and are often afforded confidentiality for some period of time there may currently be pending applications, unknown to us, that later result in issued patents that could cover one or more of our solutions.
In addition, because patent applications can take years to issue and are often afforded confidentiality for some period of time there may currently be pending applications, unknown to us, that later result in issued patents that could cover one or more of our solutions.
There could be laws and regulations applicable to our business that we have not identified or that, if changed, may be costly to us, and we cannot predict all the ways in which implementation of such laws and regulations may affect us.
There could be laws and regulations applicable to our business that we have not identified or that, if changed, may be costly to us, and we cannot predict all the ways in which implementation of such laws and regulations may affect us. 38 Table of Content s Further, we cannot predict the likelihood, nature, or extent of health reform initiatives that may arise from future legislation or administrative action, particularly following any changes in the Presidential administration.
This could make it difficult for us to stop the infringement or misappropriation of our intellectual property rights. Proceedings to enforce our intellectual property in foreign jurisdictions could result in 34 Table of Content s substantial costs and divert our efforts and attention from other aspects of our business.
Proceedings to enforce our intellectual property in foreign jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business.
Patients about whom we obtain health information, as well as the providers who share this information with us, may have statutory or contractual 23 Table of Content s rights that limit our ability to use and disclose the information.
Patients about whom we obtain health information, as well as the providers who share this information with us, may have statutory or contractual rights that limit our ability to use and disclose the information. We may be required to expend significant capital and other resources to ensure ongoing compliance with applicable Data Protection Laws, Privacy Policies, and Data Protection Obligations.
We compete for customers for our Hiring Solutions with large and regional staffing companies, job boards, self-service recruiting tools, and medical recruiting firms.
We compete for customers for our Hiring Solutions with large and regional staffing companies, job boards, self-service recruiting tools, and medical recruiting firms. We compete for customers for our Productivity Solutions with other providers of various solutions that aim to improve the productivity of the information technology services inside of health systems.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties Our corporate headquarters is located in San Francisco, California and consists of approximately 9,197 square feet of space under a lease that expires on December 31, 2023. We also lease office space in Irving, Texas. We lease all of our facilities and 42 Table of Content s do not own any real property.
Biggest changeItem 2. Properties Our corporate headquarters is located in San Francisco, California and consists of approximately 9,197 square feet of space under a lease that expires on December 31, 2025. We also lease office space in Irving, Texas. We lease all of our facilities and do not own any real property.
We believe that our facilities are sufficient to meet our needs for the immediate future, and that, should it be needed, suitable additional space will be available to accommodate expansion of our operations. Item 3.
We believe that our facilities are sufficient to meet our needs for the immediate future, and that, should it be needed, suitable additional space will be available to accommodate expansion of our operations. 43 Table of Content s
Removed
Legal Proceedings For discussion around our legal proceedings, please refer to Note 14—Commitments and Contingencies included in Part II, Item 8 of this Annual Report on Form 10-K. Item 4. Mine Safety Disclosures None. 43 Table of Content s PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThere has been no material change in the planned use of proceeds from our IPO from those disclosed in the Final Prospectus. 44 Table of Content s Issuer Purchases of Equity Securities The following table presents information with respect to the repurchases of our Class A common stock during the three months ended March 31, 2023: Period Total Number of Shares Repurchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) January 1 - 31, 2023 — $ — — $ 70,000 February 1 - 28, 2023 — $ — — $ 70,000 March 1 - 31, 2023 523,647 $ 30.59 523,647 $ 53,981 Total 523,647 523,647 _______________ (1) On October 28, 2022, the Company’s board of directors authorized a program to repurchase up to $70.0 million of the Company’s Class A common stock.
Biggest changeThere has been no material change in the planned use of proceeds from our IPO from those disclosed in the Final Prospectus. 45 Table of Content s Issuer Purchases of Equity Securities The following table presents information with respect to the repurchases of our Class A common stock during the three months ended March 31, 2024: Period Total Number of Shares Repurchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) January 1 - 31, 2024 — $ — — $ 61,982 February 1 - 29, 2024 — $ — — $ 61,982 March 1 - 31, 2024 787,054 $ 27.60 787,054 $ 40,258 Total 787,054 787,054 _______________ (1) On October 26, 2023, the Company’s board of directors authorized a program to repurchase up to $70 million of the Company’s Class A common stock over a period of 12 months.
The stock price performance shown in the graph represents past performance and should not be considered an indication of future stock price performance. 45 Table of Content s Item 6. [Reserved] 46 Table of Content s
The stock price performance shown in the graph represents past performance and should not be considered an indication of future stock price performance. Item 6. [Reserved] 46 Table of Content s
The graph below shows the cumulative total return to our stockholders between June 24, 2021 (the date that our Class A common stock commenced trading on the NYSE) through March 31, 2023 in comparison to the S&P 500 Index and the S&P 500 Information Technology Index.
The graph below shows the cumulative total return to our stockholders between June 24, 2021 (the date that our Class A common stock commenced trading on the NYSE) through March 31, 2024 in comparison to the S&P 500 Index and the S&P 500 Information Technology Index.
There is no established public trading market for our Class B common stock. Holders of Record As of May 23, 2023, there were 437 stockholders of record of our Class A common stock and 70 stockholders of record for our Class B common stock.
There is no established public trading market for our Class B common stock. Holders of Record As of May 16, 2024, there were 465 stockholders of record of our Class A common stock and 59 stockholders of record for our Class B common stock.
The repurchases could be executed from time to time for a period of 12 months through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. As of March 31, 2023, $54.0 million remained available and authorized for repurchase.
The repurchases can be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeFiscal Year Ended March 31, 2023 2022 2021 (in thousands) Revenue $ 419,052 $ 343,548 $ 206,897 Cost of revenue (1) 53,490 39,787 31,196 Gross profit 365,562 303,761 175,701 Operating expenses: Research and development (1) 80,186 62,350 43,873 Sales and marketing (1) 123,523 92,129 62,033 General and administrative (1) 36,745 35,746 16,492 Total operating expenses 240,454 190,225 122,398 Income from operations 125,108 113,536 53,303 Other income, net 8,048 469 4,466 Income before income taxes 133,156 114,005 57,769 Provision for (benefit from) income taxes 20,338 (40,778) 7,559 Net income $ 112,818 $ 154,783 $ 50,210 _______________ (1) Costs and expenses include stock-based compensation expense as follows: Fiscal Year Ended March 31, 2023 2022 2021 (in thousands) Cost of revenue $ 9,634 $ 4,979 $ 600 Research and development 12,583 7,065 1,975 Sales and marketing 16,939 8,108 1,998 General and administrative 8,678 11,290 2,679 Total stock-based compensation expense $ 47,834 $ 31,442 $ 7,252 Fiscal Year Ended March 31, 2023 2022 2021 (percentage of revenue) Revenue 100 % 100 % 100 % Cost of revenue 13 12 15 Gross profit 87 88 85 Operating expenses: Research and development 19 18 21 Sales and marketing 29 27 30 General and administrative 9 10 8 Total operating expenses 57 55 59 Income from operations 30 33 26 Other income, net 2 — 2 Income before income taxes 32 33 28 Provision for (benefit from) income taxes 5 (12) 4 Net income 27 % 45 % 24 % 50 Table of Content s Comparison of the Fiscal Years Ended March 31, 2023 and 2022 Revenue Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Revenue $ 419,052 $ 343,548 $ 75,504 22 % Revenue for the fiscal year ended March 31, 2023 increased $75.5 million as compared to the fiscal year ended 2022.
Biggest changeFiscal Year Ended March 31, 2024 2023 2022 (in thousands) Revenue $ 475,422 $ 419,052 $ 343,548 Cost of revenue (1) 50,669 53,490 39,787 Gross profit 424,753 365,562 303,761 Operating expenses: Research and development (1) 81,983 80,186 62,350 Sales and marketing (1) 133,129 123,523 92,129 General and administrative (1) 37,827 36,745 35,746 Restructuring (1) 7,936 — — Total operating expenses 260,875 240,454 190,225 Income from operations 163,878 125,108 113,536 Other income, net 21,324 8,048 469 Income before income taxes 185,202 133,156 114,005 Provision for (benefit from) income taxes 37,620 20,338 (40,778) Net income $ 147,582 $ 112,818 $ 154,783 _______________ (1) Costs and expenses include stock-based compensation expense as follows: Fiscal Year Ended March 31, 2024 2023 2022 (in thousands) Cost of revenue $ 9,479 $ 9,634 $ 4,979 Research and development 11,978 12,583 7,065 Sales and marketing 16,857 16,939 8,108 General and administrative 9,116 8,678 11,290 Restructuring $ 3,646 $ — $ — Total stock-based compensation expense $ 51,076 $ 47,834 $ 31,442 Fiscal Year Ended March 31, 2024 2023 2022 (percentages of revenue) Revenue 100 % 100 % 100 % Cost of revenue 11 13 12 Gross profit 89 87 88 Operating expenses: Research and development 17 19 18 Sales and marketing 28 29 27 General and administrative 8 9 10 Restructuring 2 0 0 Total operating expenses 55 57 55 Income from operations 34 30 33 Other income, net 5 2 — Income before income taxes 39 32 33 Provision for (benefit from) income taxes 8 5 (12) Net income 31 % 27 % 45 % 50 Table of Content s Comparison of the Fiscal Years Ended March 31, 2024 and 2023.
Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments. 47 Table of Content s The number of customers with at least $100,000 of revenue has grown steadily in recent years as we have engaged new customers and expanded within existing ones.
Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments. 47 Table of Content s The number of customers with at least $100,000 and $500,000 of revenue has grown steadily in recent years as we have engaged new customers and expanded within existing ones.
Net cash used in investing activities Cash used in investing activities was $59.9 million for the fiscal year ended March 31, 2023, which primarily consisted of $190.6 million of marketable securities purchases, $53.5 million paid for the acquisition of AMiON, $4.5 million for internal-use software development costs, and $1.7 million for purchases of property and equipment.
Cash used in investing activities was $59.9 million for the fiscal year ended March 31, 2023, which primarily consisted of $190.6 million of marketable securities purchases, $53.5 million paid for the acquisition of AMiON, $4.5 million for internal-use software development costs, and $1.7 million for purchases of property and equipment.
Sales and Marketing Sales and marketing expense is primarily comprised of personnel-related expenses , sales incentive compensation, travel, and other event expenses. Sales and marketing expense also includes costs for third-party services and contractors, information technology and software-related costs, allocated overhead, amortization of intangible assets, and change in fair value of contingent earn-out consideration liability.
Sales and Marketing Sales and marketing expense is primarily comprised of personnel-related expenses , sales incentive compensation, advertising costs, travel, and other event expenses. Sales and marketing expense also includes costs for third-party services and contractors, information technology and software-related costs, allocated overhead, amortization of intangible assets, and change in fair value of contingent earn-out consideration liability.
We expect our gross margin to remain relatively steady over the near term, although our quarterly gross margin is expected to fluctuate from period to period depending on the interplay of these and other factors. Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses.
We expect our gross margin to remain relatively steady over the near term, although our quarterly gross margin is expected to fluctuate from period to period depending on the interplay of these and other factors. Operating Expenses Our operating expenses consist of research and development, sales and marketing, general and administrative, and restructuring expenses.
We capitalize sales incentive compensation that is considered to be incremental and recoverable costs of obtaining a contract with a customer. These sales incentive compensation costs are amortized over the period of benefit. We expect sales and marketing expense to increase and to be our largest expense on an absolute basis.
We capitalize sales incentive compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. These sales incentive compensation costs are amortized over the period of benefit. We expect sales and marketing expense to increase and to be our largest expense on an absolute basis.
Adjusted EBITDA We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net.
Adjusted EBITDA We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, restructuring expense, change in fair value of contingent earn-out consideration liability, and other income, net.
Key Business and Financial Metrics We monitor a number of key business and financial metrics to assess the health and success of our business, including: Customers with Trailing 12-Month Subscription Revenue Greater than $100,000.
Key Business and Financial Metrics We monitor a number of key business and financial metrics to assess the health and success of our business, including: Customers with Trailing 12-Month Subscription Revenue Greater than $100,000 and $500,000.
Gross profit and gross margin has been and will continue to be affected by a number of factors, including the timing of our acquisition of new customers and sa les of additional solutions to existing customer s , the timing and extent of our investments in our operations, cloud hosting costs, growth in our customer success team, and the timing of amortization of internal-use software development costs and deferred contract costs.
Gross profit and gross margin has been and will continue to be affected by a number of factors, including the timing of our acquisition of new customers and sa les of additional solutions to existing customer s , the timing and extent of our investments in our operations, cloud hosting costs, growth in our customer success team, and the timing of amortization of internal-use software development costs.
Overview We are the leading digital platform for U.S. medical professionals, as measured by the number of U.S. physician members. Our members include more than 80% of physicians across all 50 states and every medical specialty. Our mission is to help every physician be more productive and provide better care for their patients.
Overview We are the leading digital platform for U.S. medical professionals, as measured by the number of members. Our members include more than 80% of U.S. physicians, spanning all 50 states and every medical specialty. Our mission is to help every physician be more productive and provide better care for their patients.
Net cash provided by (used in) financing activities Cash used in financing activities was $74.5 million for the fiscal year ended March 31, 2023, which primarily consisted of common stock repurchases of $85.3 million and $3.8 million of taxes paid related to the net share settlement of equity awards.
Cash used in financing activities was $74.5 million for the fiscal year ended March 31, 2023, which primarily consisted of common stock repurchases of $85.3 million and $3.8 million of taxes paid related to the net share settlement of equity awards.
For further details regarding our cash requirements from noncancelable operating lease obligations and other contractual commitments, see Note 14—Commitments and Contingencies and Note 15—Leases included in Part II, Item 8 of this Annual Report on Form 10-K.
For further details regarding our cash requirements from noncancelable operating lease obligations and other contractual commitments, see Note 15—Commitments and Contingencies and Note 16—Leases included in Part II, Item 8 of this Annual Report on Form 10-K.
Cost of Revenue Cost of revenue is primarily comprised of expenses related to cloud hosting, personnel-related expenses for our customer success team, costs for third-party platform access, software services and contractors, and other services used in connection with the delivery and support of our platform.
Cost of Revenue Cost of revenue is primarily comprised of expenses related to cloud hosting, personnel-related expenses for our customer success team, costs for third-party platform access, information technology and software-related services and contractors, and other services used in connection with the delivery and support of our platform.
The number of customers with trailing 12-month (“TTM”) subscription revenue greater than $100,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $100,000 in subscription revenue in the TTM period.
The number of customers with trailing 12-month (“TTM”) subscription revenue greater than $100,000 and $500,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $100,000 and $500,000, respectively, in subscription revenue in the TTM period.
A discussion regarding our financial condition and results of operations for the fiscal year ended March 31, 2023 compared to the fiscal year ended March 31, 2022 is presented below.
A discussion regarding our financial condition and results of operations for the fiscal year ended March 31, 2024 compared to the fiscal year ended March 31, 2023 is presented below.
For the fiscal years ended March 31, 2023, 2022, and 2021, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.
For the fiscal years ended March 31, 2024, 2023, and 2022, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.
We engage the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in business combinations. Contingent earn-out consideration payable in cash arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date.
We engage the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in business combinations. 56 Table of Content s Contingent earn-out consideration payable in cash arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date.
A discussion regarding our financial condition and results of operations for the fiscal year ended March 31, 2022 compared to the fiscal year ended March 31, 2021 can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022 and filed with the SEC on May 27, 2022.
A discussion regarding our financial condition and results of operations for the fiscal year ended March 31, 2023 compared to the fiscal year ended March 31, 2022 can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and filed with the SEC on May 26, 2023.
For the fiscal years ended March 31, 2023, 2022 and 2021, we generated adjusted EBITDA of $184.0 million, $150.3 million, and $64.8 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.
For the fiscal years ended March 31, 2024, 2023 and 2022, we generated adjusted EBITDA of $230.5 million, $184.0 million, and $150.3 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.
The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customer increasing by 21% as a result of adding new and growing existing brands and service lines. Approximately 93% of our revenue for the fiscal year ended March 31, 2023 was derived from subscription customers.
The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customer increasing by 19% as a result of adding new and growing existing brands and service lines. Approximately 95% of our revenue for the fiscal year ended March 31, 2024 was derived from subscription customers.
Our cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead. Cost of revenue is driven by the 48 Table of Content s growth of our member network and utilization of our telehealth tools.
Our cost of revenue also includes the amortization of internal-use software development costs, editorial and other content-related expenses, and allocated overhead. Cost of revenue is driven by the growth of our member network and utilization of our productivity tools.
The following table presents a reconciliation of our free cash flow to the most comparable GAAP measure, net cash provided by operating activities, for each of the periods indicated (in thousands): Fiscal Year Ended March 31, 2023 2022 2021 Net cash provided by operating activities $ 179,602 $ 126,575 $ 82,973 Purchases of property and equipment (1,701) (1,912) (245) Internal-use software development costs (4,483) (3,785) (4,365) Free cash flow $ 173,418 $ 120,878 $ 78,363 Other cash flow components: Net cash used in investing activities $ (59,923) $ (640,574) $ (70,417) Net cash provided by (used in) financing activities $ (74,461) $ 560,415 $ 5,407 Critical Accounting Policies and Estimates Our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K are prepared in accordance with GAAP.
The following table presents a reconciliation of our free cash flow to the most comparable GAAP measure, net cash provided by operating activities, for each of the periods indicated (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Net cash provided by operating activities $ 184,096 $ 179,602 $ 126,575 Purchases of property and equipment (147) (1,701) (1,912) Internal-use software development costs (5,654) (4,483) (3,785) Free cash flow $ 178,295 $ 173,418 $ 120,878 Other cash flow components: Net cash provided by (used in) investing activities $ 31,186 $ (59,923) $ (640,574) Net cash provided by (used in) financing activities $ (276,524) $ (74,461) $ 560,415 Critical Accounting Policies and Estimates Our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K are prepared in accordance with GAAP.
Cash Flows Fiscal Year Ended March 31, 2023 2022 (in thousands) Net cash provided by operating activities $ 179,602 $ 126,575 Net cash used in investing activities $ (59,923) $ (640,574) Net cash provided by (used in) financing activities $ (74,461) $ 560,415 Net cash provided by operating activities Cash provided by operating activities was $179.6 million for the fiscal year ended March 31, 2023.
Cash Flows Fiscal Year Ended March 31, 2024 2023 2022 (in thousands) Net cash provided by operating activities $ 184,096 $ 179,602 $ 126,575 Net cash provided by (used in) investing activities $ 31,186 $ (59,923) $ (640,574) Net cash provided by (used in) financing activities $ (276,524) $ (74,461) $ 560,415 Net cash provided by operating activities Cash provided by operating activities was $184.1 million for the fiscal year ended March 31, 2024.
The repurchases may be executed from time to time over the next 12 months, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
The repurchases are subject to general business and market conditions and other investment opportunities and may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
Under the fair value recognition provisions of this guidance, stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense, net of estimated forfeitures, in the consolidated statements of operations over the requisite service period, which is generally the vesting period of the respective award.
Stock-Based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense in the consolidated statements of operations over the requisite service period, which is generally the vesting period of the respective award.
Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented in this Annual Report on Form 10-K, limiting their usefulness as comparative measures. 54 Table of Content s The following table presents a reconciliation of net income to adjusted EBITDA, adjusted EBITDA margin, and net income margin (in thousands, except percentages): Fiscal Year Ended March 31, 2023 2022 2021 Net income $ 112,818 $ 154,783 $ 50,210 Adjusted to exclude the following: Acquisition and other related expenses 30 254 496 Stock-based compensation 47,834 31,442 7,252 Depreciation and amortization 10,283 5,040 3,702 Provision for (benefit from) income taxes 20,338 (40,778) 7,559 Change in fair value of contingent earn-out consideration liability 728 — — Other income, net (8,048) (469) (4,466) Adjusted EBITDA $ 183,983 $ 150,272 $ 64,753 Revenue $ 419,052 $ 343,548 $ 206,897 Net income margin 27 % 45 % 24 % Adjusted EBITDA margin 44 % 44 % 31 % Free Cash Flow Free cash flow is a key performance measure that our management uses to assess our overall performance.
Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented in this Annual Report on Form 10-K, limiting their usefulness as comparative measures. 54 Table of Content s The following table presents a reconciliation of net income to adjusted EBITDA, adjusted EBITDA margin, and net income margin (in thousands, except percentages): Fiscal Year Ended March 31, 2024 2023 2022 Net income $ 147,582 $ 112,818 $ 154,783 Adjusted to exclude the following: Acquisition and other related expenses — 30 254 Stock-based compensation 47,430 47,834 31,442 Depreciation and amortization 10,265 10,283 5,040 Provision for (benefit from) income taxes 37,620 20,338 (40,778) Restructuring expense 7,936 — — Change in fair value of contingent earn-out consideration liability 951 728 — Other income, net (21,324) (8,048) (469) Adjusted EBITDA $ 230,460 $ 183,983 $ 150,272 Revenue $ 475,422 $ 419,052 $ 343,548 Net income margin 31 % 27 % 45 % Adjusted EBITDA margin 48 % 44 % 44 % Free Cash Flow Free cash flow is a key performance measure that our management uses to assess our overall performance.
We estimate the fair value of restricted stock units, or RSUs, at our stock price on the grant date. We use the Black-Scholes option-pricing model to determine the fair value of stock options, warrants, and the ESPP.
Determining the grant-date fair value of stock options, warrants, and purchase rights under the employee stock purchase plan, or ESPP, requires judgment. We estimate the fair value of restricted stock units, or RSUs, at our stock price on the grant date. We use the Black-Scholes option-pricing model to determine the fair value of stock options, warrants, and the ESPP.
Other income, net Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Other income, net $ 8,048 $ 469 $ 7,579 1616 % Other income, net for the fiscal year ended March 31, 2023 increased $7.6 million as compared to the fiscal year ended 2022, primarily driven by increases in interest income due to higher yields earned on our cash equivalents and marketable securities portfolio and a higher average portfolio balance in fiscal 2023 as compared to fiscal 2022.
Other income, net Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Other income, net $ 21,324 $ 8,048 $ 13,276 165 % Other income, net for the fiscal year ended March 31, 2024 increased $13.3 million as compared to the fiscal year ended 2023, primarily driven by increases in interest income due to higher yields earned on our cash equivalents and marketable securities portfolio and a higher average portfolio balance.
Components of Results of Operations Revenue Marketing Solutions. Our customers purchase a subscription to Marketing Solutions, either directly or through marketing agencies, for the ability to share tailored content on the Doximity platform via a variety of modules for defined time periods.
March 31, 2024 2023 2022 Net revenue retention rate 114 % 117 % 157 % Components of Results of Operations Revenue Marketing Solutions. Our customers purchase a subscription to Marketing Solutions, either directly or through marketing agencies, for the ability to share tailored content on the Doximity platform via a variety of modules for defined time periods.
For the fiscal years ended March 31, 2023, 2022 and 2021, we recognized revenue of $419.1 million, $343.5 million, and $206.9 million, respectively, representing year-over-year growth rates of 22% and 66%, respectively. Our net income was $112.8 million, $154.8 million, and $50.2 million for the fiscal years ended March 31, 2023, 2022, and 2021, respectively.
For the fiscal years ended March 31, 2024, 2023 and 2022, we recognized revenue of $475.4 million, $419.1 million, and $343.5 million, respectively, representing year-over-year growth rates of 13% and 22%, respectively. Our net income was $147.6 million, $112.8 million, and $154.8 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
These factors are also considered in determining the useful life of the acquired intangible assets. These estimates are based in part on historical experience, market conditions and information obtained from management of the acquired companies and are inherently uncertain.
These estimates are based in part on historical experience, market conditions and information obtained from management of the acquired companies and are inherently uncertain.
The purchase price allocation process requires management to make significant judgment 56 Table of Content s and estimates, including the selection of valuation methodologies, estimates of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates.
The purchase price allocation process requires management to make significant judgment and estimates, including the selection of valuation methodologies, estimates of future expected cash flows, future revenue growth, margins, customer retention rates, technology life, royalty rates, expected use of acquired assets, and discount rates. These factors are also considered in determining the useful life of the acquired intangible assets.
We believe that our existing cash and cash equivalents and marketable securities will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
The Company did not incur any excise taxes during the prior year. We believe that our existing cash and cash equivalents and marketable securities will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
The increase was primarily driven by a $70.4 million increase in subscription revenue. Of the increase in subscription revenue, $15.3 million was driven by the addition of new subscription customers 1 and $55.1 million was due to the expansion of existing customers.
Of the increase in subscription revenue, $9.4 million was driven by the addition of new subscription customers 1 and $50.9 million was due to the expansion of existing customers.
In June 2021, we completed our IPO, in which we issued and sold 22,505,750 shares of our Class A common stock at $26.00 per share, including 3,495,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. We received proceeds of $548.5 million after deducting underwriting discounts and commissions as well as deferred offering costs.
In June 2021, we completed our IPO, in which we issued and sold 22,505,750 shares of our Class A common stock at $26.00 per share, including 3,495,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares.
Net Revenue Retention Rate. Net revenue retention rate is calculated by taking the TTM subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period.
Net revenue retention rate is calculated by taking the TTM subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items.
These outflows were partially offset by an increase of $17.5 million in deferred revenue due to the timing of customer billings and program launches. Cash provided by operating activities was $126.6 million for the fiscal year ended March 31, 2022.
These outflows were partially offset by an increase of $17.5 million in deferred revenue due to the timing of customer billings and program launches.
We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes California research and development credits, California alternative minimum tax credits, and capital loss carryforwards. 49 Table of Content s Results of Operations The following tables set forth our consolidated results of operations data and such data as a percentage of revenue for the periods presented.
We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes Arizona research and development credits, California alternative minimum tax credits, and capital loss carryforwards.
We intend to continue to invest additional resources in our cloud infrastructure and our customer support organizations to support the growth of our business and expect these expenses to increase on an absolute dollar basis. Gross Profit and Gross Margin Gross profit is total revenue less total cost of revenue.
We intend to continue to invest additional resources in our cloud infrastructure and our customer support organizations to support the growth of our business. 48 Table of Content s Gross Profit and Gross Margin Gross profit is total revenue less total cost of revenue. Gross margin is gross profit expressed as a percentage of total revenue.
As of March 31, 2023, the Company repurchased and retired 523,647 shares of Class A common stock for an aggregate purchase price of $16.0 million, and $54.0 million remained available and authorized for repurchases.
As of March 31, 2024, the Company repurchased and retired 1,119,014 shares of Class A common stock for an aggregate purchase price of $29.7 million. As of March 31, 2024, $40.3 million remained available and authorized for repurchase.
In addition, there was a $1.9 million increase in third-party software costs as a result of increased research and development activities and a $1.1 million increase in employee events and travel-related expenses as compared to the prior period. 1 We define new subscription customers as revenue generating subscription customers in the current fiscal period who did not contribute any revenue for the same period in the prior fiscal year. 51 Table of Content s Sales and marketing Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Sales and marketing $ 123,523 $ 92,129 $ 31,394 34 % Sales and marketing expense for the fiscal year ended March 31, 2023 increased $31.4 million as compared to the fiscal year ended 2022.
Sales and marketing Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Sales and marketing $ 133,129 $ 123,523 $ 9,606 8 % Sales and marketing expense for the fiscal year ended March 31, 2024 increased $9.6 million as compared to the fiscal year ended 2023, primarily driven by a $3.9 million increase in market research and trade shows, a $1.6 million increase in personnel-related costs due to merit increases offset by reduction in average headcount as a result of the Company’s restructuring plan executed in August 2023, a $1.4 million increase in software-related costs, and a $0.9 million increase in employee events and travel-related expenses. 1 We define new subscription customers as revenue generating subscription customers in the current fiscal period who did not contribute any revenue for the same period in the prior fiscal year. 51 Table of Content s General and administrative Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) General and administrative $ 37,827 $ 36,745 $ 1,082 3 % General and administrative expense for the fiscal year ended March 31, 2024 increased $1.1 million as compared to the fiscal year ended 2023, primarily driven by a $1.0 million increase in accounting and legal fees.
These assumptions include the expected term of the award, the expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends.
These assumptions include the expected term of the award, the expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends. Business Combinations The results of businesses acquired in business combinations are included in our consolidated financial statements from the date of the acquisition.
The net decrease in operating assets and liabilities was driven by a $31.0 million increase in accounts receivable due to the growth of our business and the timing of collections, a $9.6 million increase in deferred contract costs due to increased sales activity, and a $9.1 million increase in prepaid expenses and other assets.
The net outflow from operating assets and liabilities was driven by a $20.5 million increase in prepaid expenses and other assets primarily due to the prepayment of taxes, an $8.6 million increase in deferred contract costs due to increased sales activity, a decrease of $6.1 million in deferred revenue due to the timing of customer billings and program launches.
Non-cash items primarily consisted of stock-based compensation expense of $31.4 million, amortization of deferred contract costs of $9.8 million, depreciation and amortization expense of $5.0 million, amortization of the premium on marketable securities of $4.3 million, offset by a negative non-cash adjustment for deferred tax benefit of $41.2 million.
Non-cash items primarily consisted of stock-based compensation expense of $51.1 million, depreciation and amortization expense of $10.3 million, amortization of deferred contract costs of $8.9 million, non-cash lease expense of $2.1 million, partially offset by deferred income taxes of $8.6 million and accretion of discount on marketable securities of $5.2 million.
Hiring Solutions contracts are noncancellable and customers are billed in annual, quarterly, or monthly installments in advance of the service period, and revenue is recognized ratably over the contractual term.
Hiring Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period, and revenue is recognized ratably over the contractual term. We also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively.
We expect that general and administrative expense will increase on an absolute dollar basis as we incur compliance costs associated with being a publicly-traded company, including legal, audit, and consulting fees. Other Income, Net Other income, net consists primarily of investment income earned on our cash equivalents and marketable securities.
We expect that general and administrative expense will increase on an absolute dollar basis as we incur compliance costs associated with being a publicly-traded company, including legal, audit, and consulting fees. Restructuring Restructuring expense primarily consists of severance payments, employee benefits, and stock-based compensation in relation to the modification of equity awards associated with the management-approved plan.
Business Combinations The results of businesses acquired in business combinations are included in our consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date.
Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill.
We also support physicians in their day-to-day practice of medicine with mobile-friendly and easy-to-use clinical workflow tools such as voice and video dialer, secure messaging, and digital faxing. Our business model has delivered high revenue growth at scale with profitability.
We also support physicians in their day-to-day practice of medicine with mobile-friendly and easy-to-use productivity tools such as voice and video dialer, secure messaging, digital faxing, and Doximity GPT. Our business model is designed to both respect and support physicians while driving value for our customers through our Marketing, Hiring, and Productivity Solutions.
On October 28, 2022, the Company’s board of directors authorized an additional program to repurchase up to $70.0 million of the Company’s Class A common stock.
All of these programs were completed as of October 2023. On October 26, 2023, the Company’s board of directors authorized a program to repurchase up to $70 million of the Company’s Class A common stock over a period of 12 months.
These decreases were partially offset by an increase of $8.7 million in accounts payable, accrued expenses and other liabilities, which was primarily a result of increased accrued payroll, bonus, and related expenses due to increased headcount and timing of payments and increased rebate liabilities due to higher sales combined with the timing of payments.
The outflows were partially offset by an $8.3 million increase in accounts payable, accrued expenses, and other liabilities which was primarily due to the timing of transferable tax credit payments and a $4.0 million decrease in accounts receivable due to the timing of billings and collections.
As of March 31, 2023, our principal sources of liquidity were cash and cash equivalents 52 Table of Content s and marketable securities of $841.0 million. Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, commercial paper, certificates of deposit, asset-backed securities, and sovereign bonds.
Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, commercial paper, asset-backed securities, and sovereign bonds.
Cash used in investing activities was $640.6 million for the fiscal year ended March 31, 2022, which primarily consisted of purchases of marketable securities of $1.3 billion, partially offset by proceeds from the sale of marketable securities of $633.8 million, proceeds from the maturities of marketable securities of $47.9 million, and capitalization of internal-use software development costs of $3.8 million.
Net cash provided by (used in) investing activities Cash provided by investing activities was $31.2 million for the fiscal year ended March 31, 2024, which primarily consisted of proceeds from the maturities of marketable securities of $435.2 million and proceeds from the sale of marketable securities of $74.7 million.
These proceeds were partially offset by $4.0 million in payments for deferred offering costs and $2.7 million in payments from the repurchase and retirement of common stock. Non-GAAP Financial Measures We use adjusted EBITDA and free cash flow to measure our performance, identify trends, formulate financial projections, and make strategic decisions.
Non-GAAP Financial Measures We use adjusted EBITDA and free cash flow to measure our performance, identify trends, formulate financial projections, and make strategic decisions.
This consisted of net income of $154.8 million, adjusted for non-cash items of $12.1 million and a net outflow in operating assets and liabilities of 53 Table of Content s $40.3 million.
This consisted of net income of $147.6 million, adjusted for non-cash items of $61.0 million and a net outflow from operating assets and liabilities of $24.5 million.
Our cloud-based platform provides our members with tools specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, monitor their work schedules, and manage their careers. Doximity membership is free for physicians.
Our physician cloud puts modern software in the hands of physicians and other medical professionals, enabling our members to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits.
Operating Expenses Research and development Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Research and development $ 80,186 $ 62,350 $ 17,836 29 % Research and development expense for the fiscal year ended March 31, 2023 increased $17.8 million as compared to the fiscal year ended 2022.
Operating Expenses Research and development Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Research and development $ 81,983 $ 80,186 $ 1,797 2 % Research and development expense for the fiscal year ended March 31, 2024 increased $1.8 million as compared to the fiscal year ended 2023, primarily driven by a $1.2 million increase in third-party contractor costs and a $1.0 million increase in hosting and software license costs associated with running operations and ongoing projects and services to continuously improve and optimize our products and services.
This change was primarily driven by a decrease in stock option activities resulting in a decrease in tax deductions and research and development tax credits. ___________________ NM: Percentage not meaningful. Liquidity and Capital Resources Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers.
Liquidity and Capital Resources Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers. As of March 31, 2024, our principal sources of liquidity were cash and cash equivalents and marketable securities of $762.9 million.
General and administrative Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) General and administrative $ 36,745 $ 35,746 $ 999 3 % General and administrative expense for the fiscal year ended March 31, 2023 increased $1.0 million as compared to the fiscal year ended 2022.
Revenue Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Revenue $ 475,422 $ 419,052 $ 56,370 13 % Revenue for the fiscal year ended March 31, 2024 increased $56.4 million as compared to the fiscal year ended 2023. The increase was primarily driven by a $60.3 million increase in subscription revenue.
The remaining increase in revenue was driven by an increase in medical recruiting services.
The remaining change in revenue was due to a reduction in permanent placement recruiting services.
Cost of revenue, gross profit and gross margin Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Cost of revenue $ 53,490 $ 39,787 $ 13,703 34 % Gross profit $ 365,562 $ 303,761 $ 61,801 20 % Gross margin 87 % 88 % Cost of revenue for the fiscal year ended March 31, 2023 increased $13.7 million as compared to the fiscal year ended 2022.
Cost of revenue, gross profit, and gross margin Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Cost of revenue $ 50,669 $ 53,490 $ (2,821) (5) % Gross profit $ 424,753 $ 365,562 $ 59,191 16 % Gross margin 89 % 87 % Cost of revenue for the fiscal year ended March 31, 2024 decreased $2.8 million as compared to the fiscal year ended 2023, primarily driven by a decrease in personnel-related costs as a result of a reduction in average headcount due to the Company’s restructuring plan executed in August 2023 and a decrease in other third-party expenses.
Provision for (benefit from) income taxes Fiscal Year Ended March 31, Change 2023 2022 $ % (in thousands, except percentages) Provision for (benefit from) income taxes $ 20,338 $ (40,778) $ 61,116 NM For the fiscal year ended March 31, 2023, we had income tax expense of $20.3 million compared to an income tax benefit of $40.8 million for the fiscal year ended 2022.
Provision for income taxes Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Provision for income taxes $ 37,620 $ 20,338 $ 17,282 85 % Income tax expense for the fiscal year ended March 31, 2024 increased $17.3 million as compared to the fiscal year ended 2023, primarily driven by higher income before taxes and decreased tax deductions from stock award activities, offset by transferable federal tax credits and the release of a valuation allowance associated with California research and development tax credits that are expected to be utilized. ___________________ NM: Percentage not meaningful.
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This cohort of customers accounted for approximately 87% of our revenue in fiscal 2023.
Added
Our revenue-generating customers, primarily pharmaceutical manufacturers and health systems, have access to a suite of commercial solutions that benefit from broad physician usage. Our business model has delivered high revenue growth at scale with profitability.
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March 31, 2023 2022 2021 Number of customers with at least $100,000 of revenue 294 1 254 188 _________________________ 1 The metric excludes the impact of the AMiON acquisition, which closed on April 1, 2022, including customers of, and subscription revenue generated from, the AMiON on-call scheduling and messaging application, and the impact of such acquisition was immaterial to the periods presented.
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These cohorts of customers accounted for approximately 90% and 81%, respectively, of our revenue in fiscal 2024. March 31, 2024 2023 2022 Number of customers with at least $100,000 of revenue 296 294 251 Number of customers with at least $500,000 of revenue 98 80 71 Net Revenue Retention Rate.
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March 31, 2023 2022 2021 Net revenue retention rate 117 % 1 157 % 153 % _________________________ 1 The metric excludes the impact of the AMiON acquisition, which closed on April 1, 2022, including customers of, and subscription revenue generated from, the AMiON on-call scheduling and messaging application, and the impact of such acquisition was immaterial to the periods presented.
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One-time employee termination benefits are recognized at the time of communication of the terms of the plan to the employees, unless future service is required, in which case the costs are recognized over the future service period. Other Income, Net Other income, net consists primarily of investment income earned on our cash equivalents and marketable securities.
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Through our acquisition of Curative Talent, completed in fiscal 2021, we also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively. Revenue for temporary placement services is recognized net of third-party contractor fees.
Added
Our effective income tax rate generally differs from the U.S. statutory tax rate of 21.0% primarily due to U.S. federal and state research and development tax credits, stock-based compensation related tax benefits, change in valuation allowance, and state income taxes. 49 Table of Content s Results of Operations The following tables set forth our consolidated results of operations data and such data as a percentage of revenue for the periods presented.
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Gross margin is gross profit expressed as a percentage of total revenue.
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The gross margin for the fiscal year ended March 31, 2024 increased due to growth in our revenue as well as a reduction in our costs of revenue as a result of the Company’s restructuring plan executed in August 2023.
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The increase in cost of revenue was primarily driven by a $5.4 million increase in personnel-related costs as a result of headcount growth of 24%, and a $5.2 million increase in expense related to the U.S. News partnership, of which $2.8 million related to the U.S. News Warrant granted in October 2021.
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Restructuring Fiscal Year Ended March 31, Change 2024 2023 $ % (in thousands, except percentages) Restructuring $ 7,936 $ — $ 7,936 NM In August 2023, the Company initiated a restructuring plan to better align the Company’s resources with its priorities and reduced its workforce by 10%.
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In addition, there was an increase of $1.9 million in stock-based compensation expense, primarily due to headcount growth and awards granted to existing employees. Gross margin for the fiscal year ended March 31, 2023 decreased primarily due to headcount growth and expenses related to our U.S. News partnership, offset by growth in revenues.
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The $7.9 million in restructuring charges incurred during the fiscal year ended March 31, 2024 consisted of $4.3 million of severance payments and employee benefits and $3.6 million of stock-based compensation expense for the accelerated vesting of equity awards.
Removed
The increase in research and development expense was primarily driven by a $9.6 million increase in personnel-related costs as a result of headcount growth of approximately 12%. The increase was also driven by a $5.5 million increase in stock-based compensation primarily attributable to headcount growth and awards granted to existing employees.
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We received proceeds of $548.5 million after deducting underwriting discounts and commissions as well as deferred offering costs. 52 Table of Content s The Company’s board of directors authorized various programs to repurchase up to $340 million of the Company’s Class A common stock. Under these programs, the Company repurchased and retired 13,790,535 shares of Class A common stock.
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The increase in sales and marketing expense was primarily driven by a $9.5 million increase in personnel-related costs due to headcount growth of 17%.
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Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. During the fiscal year ended March 31, 2024, the Company incurred excise taxes of $1.5 million, all of which remained unpaid as of March 31, 2024.
Removed
The increase was also driven by an $8.8 million increase in stock-based compensation expense, primarily due to headcount growth and awards granted to existing employees and a $4.9 million increase in costs related to employee events, travel, trade shows, conferences, and other marketing activities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFluctuations in the value of our investments caused by a change in interest rates are recorded in other comprehensive income and are realized in net income only if we sell the underlying securities. Impact of Inflation We do not believe that inflation has had a material effect on our business, results of operations, or financial condition.
Biggest changeThis estimate is based on a sensitivity model that measures market value changes when changes in interest rates occur. Fluctuations in the value of our investments caused by a change in interest rates are recorded in other comprehensive income and are realized in net income only if we sell the underlying securities.
Interest Rate Risk Our cash and cash equivalents and marketable securities primarily consist of cash on hand and highly liquid investments in money market funds, corporate notes and bonds, asset-backed securities, commercial paper, certificates of deposit, U.S. government and agency securities, and sovereign bonds.
Interest Rate Risk Our cash and cash equivalents and marketable securities primarily consist of cash on hand and highly liquid investments in money market funds, corporate notes and bonds, asset-backed securities, commercial paper, U.S. government and agency securities, and sovereign bonds.
A hypothetical 100 basis point increase in interest rates would have resulted in a decrease of $5.0 million and $10.6 million, respectively, in the market value of our cash equivalents and marketable securities as of March 31, 2023 and March 31, 2022.
A hypothetical 100 basis point increase in interest rates would have resulted in a decrease of $3.4 million and $5.0 million, respectively, in the market value of our cash equivalents and marketable securities as of March 31, 2024 and March 31, 2023.
As of March 31, 2023 and 2022, we had cash and cash equivalents of $158.0 million and $112.8 million and marketable securities of $683.0 million and $685.3 million, respectively. We do not enter into investments for trading or speculative purposes.
As of March 31, 2024 and 2023, we had cash and cash equivalents of $96.8 million and $158.0 million and marketable securities of $666.1 million and $683.0 million, respectively. We do not enter into investments for trading or speculative purposes.
Nonetheless, if our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs. Our inability or failure to do so could harm our business, financial condition, and results of operations. 57 Table of Contents DOXIMITY, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Our inability or failure to do so could harm our business, financial condition, and results of operations. 57 Table of Contents DOXIMITY, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
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Impact of Inflation We do not believe that inflation has had a material effect on our business, results of operations, or financial condition. Nonetheless, if our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs.

Other DOCS 10-K year-over-year comparisons