Operator: Your next question comes from the line of Allen Lutz from Bank of America.
Allen Lutz: I guess this one for Jeff or Anna. The point-of-care offering was sort of introduced intra-year this year. So I’m curious, as you think about [indiscernible] because most of your business is on this annual part of the annual budget cycle. Do you expect to see a step-up in point of care revenue in your fiscal 4Q calendar or 1Q? And then related to that, is there any way to frame how much point of care revenue is embedded in that 4Q guide?
Jeffrey Tangney: Sure. This is Jeff. I’ll take that, Alan and Anna may add some color. The short answer is our point of care is doing really well fundamentally because it’s a video product. So as I mentioned earlier, that ability to have engaging video that’s 20, 30 seconds long, our watch rates when doctors are just sitting there waiting for the patient to join a call which is a lot of minutes every month, is a really great time to reach doctors and to get that engagement. That said, it’s typically — it’s playing out that it’s selling together with our broader programs. And our client portal will actually reinforce this and again, bring all of this data and all the results back together into one place. So candidly, it’s a little difficult to point to our success in point of care discretely from our news feed because they’re both doing super well.
And they’re typically, again, being sold as a bundle. So with regard to our guidance, I guess, I defer to Anna but I’d just say, overall, video engagement which is what our point-of-care product is, has been a real hit.
Anna Bryson: Yes. And as far as what we have embedded in our Q4 guidance, I would say not much from that perspective because we’re thinking about launch time lines, we’re sensitive to the time it takes to get these products created and live. And so from our perspective, we’re not counting on a big ramp there at all.
Operator: Your next question comes from the line of Glen Santangelo from Jefferies.
Glen Santangelo: Jeff, I just wanted to follow up on some of the comments that you made regarding the macroeconomic climate. You said that your clients seemingly less willing to drive towards experimentation. I’m trying to get a sense for maybe — I mean it seems like it’s benefiting you in this environment. And so I’m trying to get a sense for maybe overall market growth. I think Anna following up on your remarks, you said that you all feel comfortable that you’ll be able to grow faster than the market. And I’m trying to get a sense for — in this year, how fast is the market growing? Clearly, we’re not seeing digital outperform the overall marketing budgets by as much as they were during the pandemic but I’m sure it’s still growing faster.
And I’m just trying to get a sense in the current environment. with the competitive landscape of programmatic DTC, DTP? Like where is the market growth today, you think, in your mind? Sorry, there’s a lot to that question. So however you want to handle it.
Jeffrey Tangney: Great, Glen. This is Jeff. I’ll take the first crack. So first, I’ll say, pre-COVID pharma health care spend by our estimates and IDC and others about 17% of their marketing budgets digitally on digital programs which is way under the Fortune 500 or general industry norm at that time. I think during COVID, there was some catch-up. It grew faster our current guesstimate is that it’s probably half of the 75% that the Fortune 500 does. So in the mid-30s in terms of what percent is spent digitally. But there is a bit of a reversion to the mean as we come out of post COVID here. And again, I’d say, overall, the general approach to all things these days is just more caution at the macro level, given that our clients could invest that money at low risk at high rates these days as well instead of investing in our marketing.
Again, overtime, that will shake out and when we’re delivering a 10:1 return for our clients, we’ll see more come our way. But you’ll see probably less of that experimentation and those new websites that were tried out during COVID that didn’t have any return. So I don’t know, Anna?
Anna Bryson: Yes. So specifically to your question, Glen, around market growth. What we said on our August call is that we believe the market this year grew maybe mid- to high single digits. And as far as our expectations for next year, just given the continued macro headwinds, we think next year, we’ll look roughly similar to this past year. We do think this is more of a near-term phenomenon. To Jeff’s point, we are contending with a post-COVID reset and then a macro downturn. I do think over time, there will be a reversion to the mean upwards just for where we are right now in this macro climate, we’re assuming the growth rate remains similar to what we saw this last year.
Operator: Your next question comes from the line of David Larson from BTIG.
David Larsen: I’ve been hearing the 10:1 return for a long time. But I think what I’ve heard that’s new this quarter is a tighter integration with IQVIA, the ability for the clients to actually run the data themselves and look at that think through their client portal, is that correct? And can you maybe just provide a little more color around it? Did I hear that correctly that you can see the real-time ROI in a self-service way. Is that new?
Jeffrey Tangney: David, that’s right, that is new. And again, this is out in beta right now. It’s something that we expect to make available to all of our pharma clients early next year. But I think it’s a big unlock. You’re absolutely right. It’s something that we’ve seen in our hospital business has been a big difference maker. So in our hospital business, we’ve been doing this now for a year or 2 where we’ve been able to provide our clients these quarterly refreshes of their referral data and show them what their ROI was. And it’s interesting. The first time you do it, it’s a 45-minute call with a lot of statistical questions. The second time you do it, it’s a half hour call. And then the third time, it’s just an e-mail. And it’s a reminder to our clients that — of the value we provide them.
Right now, historically, what we’ve done for our clients is more of a once-a-year look back which obviously isn’t as frequent and isn’t as top of mind. So I do think it will be a big unlock for us to make this data just more available and more transparent to our clients.
David Larsen: Yes, I think there’s enormous value in that they can see the ROI right away. So why not invest more, especially in a tough economy. And then did I also hear you say something about insurance approvals for certain drugs, are — do you have a solution in that area or not?
Jeffrey Tangney: We’re working on it, David. So we did announce that we have our Doc’s GPT product that was launched back in February of this year. We announced last quarter that we had our first health system clients for it. So these are top hospital systems paying to get their doctors and their back-office staff access to tools that help them write ensure appeal letters. And of course, pharma would love to make that better and easier as well and they have whole content libraries that we can feed in that provide better insurance appeal letters to make sure that patients get the medications they need.
Operator: We have no further questions in our queue at this time. I will turn the call back to Jeff for closing remarks.
Jeffrey Tangney: Great. I’d like to end by just thanking the entire Doximity team for their hard work this quarter and serving more doctors every day than ever before. Thank you, everyone, for joining.
Operator: This concludes today’s conference call. Thank you for your participation and you may now disconnect.
