As it files to go public, a startup building the “LinkedIn for physicians” plans to set aside a portion of shares for its users. Doximity filed early paperwork for an IPO on Friday, though it hasn’t yet priced its stock.
The startup plans to carve out 15% of its shares in the offering for its users, based on clinicians who used the app most or attended member advisor meetings, according to its prospectus.
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Although this is an unusual move, other technology startups have also reserved shares for their top users in recent IPOs. For example, Airbnb offered a portion of its shares for people who rent their homes on its platform, and Robinhood also let retail investors get some of its shares before it went public.
San Francisco-based Doximity was founded in 2011, shortly after CEO Jeff Tangney took his previous startup public: medical reference app Epocrates. Compared to other, more vocal IPO hopefuls, the company has flown under the radar in recent years. It last raised funding in 2014, and has since carried on, buoyed by its user base and revenue from marketers.
Doximity said it currently has 1.8 million members — largely doctors, nurse practitioners and physician assistants.
For the year ending in March 2021, the startup brought in $206.9 million in revenue, a 78% increase from the previous year. Its net income also increased by 69% during that period, to $50.2 million.
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The company gets most of its money from pharmaceutical companies and health systems looking to market to physicians, as well as medical recruiting firms. But more recently, it launched a telehealth feature, which has quickly drummed up users in the last year.
Before the pandemic, Doximity offered physicians a service where they could display their office number, even when calling patients from their cell phone. Based on the demand, last year the company rolled out a video call app.
So far this year, Doximity said it has delivered more than 63 million telehealth visits, and struck subscription agreements with more than 150 health systems for this service.
The company also built out its staffing services with a recent acquisition. Last year, Doximity bought THMED — rebranded as Curative — which brought in $14.6 million in revenue through March.
Looking to the future, Doximity sees other social networks, such as LinkedIn and Facebook, as its main competitors. It plans to use the funds to grow its network, build new features, and potentially make more acquisitions.
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