No Case for DOCS

Note 1: I am an amateur investor. I make mistakes. Lots of mistakes. I garble data at a prodigious pace so anything you see here should be taken with a grain of salt and double checked. Better - flee now to save your financial well-being. Or something like that.

Note 2: If it wouldn’t be all that much trouble - and you have a buck or two to spare - consider airmailing it over to St Jude’s Research Hospital for Children. They will put it to good use healing kids who have drawn the short stick in life. You won’t miss the buck or two and you’ll be a hero to someone in desperate need.

DOXIMITY Inc - Cloud Based Platform Thingy for the Medical Industry.

Here is what DOCS says about DOCS:

The professional medical network for physicians:

Doximity is the largest community of healthcare professionals in the country - with over 80% of U.S. doctors and 50% of all NPs and physician assistants as verified members.

You can find Investors Relations here:

Four things to know about Doximity straight from the horses mouth:

  1. We’re No. 1 for clinicians

Our professional medical network has a larger membership than the American Medical Association, and more doctors use Doximity than Epic, the top EMR in the United States. Doximity’s membership has expanded to include over 80% of physicians and an increasing number of NPs, PAs, and pharmacists. Aside from the iPhone, there’s never been a piece of technology adopted by clinicians as quickly as Doximity. If you’re a clinician, claim your profile today.

  1. We take care of those who take care of others

Doximity’s passion for addressing the workflow needs and practice pain points of clinicians is core to our product development. We believe that when the whole care coordination team is connected, patients benefit and the medical sector can work more efficiently and have a bigger impact. Our “clinician-first” mentality allows us to listen to the needs of clinicians and inspires us to build simple, easy-to-use tools to solve complex problems.

  1. Medicine is mobile, and so are we

Clinicians are mobile by nature, so Doximity’s suite of tools have been developed keeping this in mind. You can send and receive electronic faxes conveniently while you’re on-the-go, securely collaborate on patient treatment when you’re on-call, and call patients from your cell phone while displaying your office number. With Doximity, you can be more productive and efficient without sacrificing convenience. Download our mobile apps.

  1. Our expertise in digital health runs deep

The Doximity team includes health tech leaders from institutions and employers such as Cleveland Clinic, Stanford University, UCSF and Medscape. Our CEO Jeff Tangney previously founded Epocrates (EPOC) and our co-founder Dr. Nate Gross previously founded Rock Health, the first venture fund for digital health. Our expertise is further bolstered by industry thought leaders on our advisory board and our healthcare-focused investors, including Emergence Capital Partners, InterWest Partners, T. Rowe Price, and Morgan Stanley.

A Few DOCS Data Points:

Current Price: $33.86 (As of June 20)
Range: 27.06 - 107.79
About 68% Below its High
YTD Momentum: -34.33%
Market Cap: $6.5B Give or Take
EV/Revenue: 17.21

The company last reported in Mid May with FQ4 results. Press Release here:…

It then promptly tanked by 18% or so - Headline here:…

Here are DOCS last 4 ER Revenue Growth numbers:

Most Recent: 40%; 67%; 75.9%; 99.7%

Wow - I’ve seen Black Diamond Ski Runs with less slope.

The problems with growth might have to do with what they told us right off the bat as noted above:

They already have 80% of the U.S. physician’s and 50% of the rest of the medical family of professionals and here is a quote from the conference call:

“As a reminder, our clients are the best brands in medicine, including all of the top 20 hospitals and all of the top 20 pharmaceutical companies.” So the logical question for a growth investor is if they already have all the market locked up then where is future growth coming from?

Then they provided Fiscal 2023 Guidance as follows:

“Today, we are raising our fiscal 2023 annual guidance by $6 million to a midpoint of $456 million or 33% growth year-on-year.”

As much as I like DOCS as a concept, the only place it might fit on the roster is Scout Team and I think there are better players available to draft.

All the Best,