Anna Bryson: Sure. I’ll start by saying this brand is a brand with one of our top 5 customers. So it’s a customer that has worked with Doximity for a very long time and has realized the value of Doximity. Is it normal? I would say no. We haven’t seen it in the past. I wouldn’t say it’s typical. But one of the things that we’re really excited by as newer brands launch is that they’re launching with a digital-first strategy in many categories. And what that means is that they’re able to invest more in digital upfront because they don’t have Salesforce or other investments that they made prior, so we’re really encouraged by what we saw with this brand, and we’re hopeful that we can see more new brands start at higher spend levels.
Allen Lutz: Great. Thank you.
Operator: Our next question is from the line of Glen Santangelo with Jefferies. Your line is live.
Glen Santangelo: All right. Yes, good evening. Thanks for taking my questions. I just had a couple of quick questions regarding fiscal ’25 at this point. And I heard — I read your comments, obviously, that you believe the market is sort of growing 5% to 7% and you can grow faster than that. But if I go back to last quarter, I think you said you characterized the market in ’23 as mid- to high percentage single digits. And ultimately, you suggested that ’24, you expect it to grow at the same level. Are you signaling any change in the HCP marketing business at all? Or is the market moving at all?
Anna Bryson: Happy to take that one, Glen. I’ll say the market growth rate that we’re seeing is pretty in line with our expectations 90 days ago, as we’re still in an uncertain macro, and we’re still facing some cyclical headwinds in end market budget growth. I’ll say what has changed in the last 90 days is our upfront did come in ahead of expectations, in particular, amongst these larger brands and newer modules. So we feel incrementally better about our ability to continue to gain share, but we are cognizant that there is still some macro uncertainty and that’s affecting pharma budgets.
Glen Santangelo: And maybe if I could just take that one step further. I mean you talked about the selling season and what happened in the fiscal third quarter. How much visibility do you have on fiscal ’25 at this point? I mean, can you comment at all? And maybe the last part of that question is, when you think about fiscal ’24, how much is the year benefiting from new product launches that maybe will you get the full 12-month benefit from next year. So any sort of color you can give us around that would be great. Thanks very much.
Anna Bryson: Sure, Glen. I’ll say it’s a little bit too soon for us to start giving further color on fiscal ’25. We’ll definitely give you the full update on that next quarter. What I can say to your original question is that, have seen a trend over the past several years where we do enter a given fiscal year with a higher percentage of revenue under contract. And we think that’s a strong indication of the value the customers find on our platform and their willingness to commit more upfront. And as we look ahead to fiscal ’25, that’s a trend that we believe will continue. But that’s about all I can say on fiscal ’25 today.
Operator: [Operator Instructions] Our next question is from the line of Jack Wallace with Guggenheim Securities. Your line is live.
Jack Wallace: Thanks for taking my questions. I want to ask the market growth question in a slightly different way as it pertains strictly to Doximity. How did the upsell season this year compared to last year? And then if you were to get a similar amount of budget release later in the year as you did in, let’s call it, calendar ’23, where does that kind of shake you out for a kind of a growth rate?
Anna Bryson: Hi, Jack. So I’ll start by saying that what we saw this past calendar year was definitely a little bit different than the prior calendar year. It was more condensed at year-end. There was a little bit less budget, I would say, to go around and that certainly affected us. That’s due to macro uncertainty and continued, as I said, cyclical headwinds and end market budget growth. What we’re really excited about this next year for the upsell season, is the ease of use that our client portal can bring. And so the ability to quickly relaunch, add targets, make buying on Doximity easier, even if budgets remain constrained, we think that, that could be an unlock for us.
Jack Wallace: Got it. Thanks, that’s helpful. And then the modular products, particularly those that are kind of cross budget, what kind of TAM or — this feels incremental, what kind of TAM should we be thinking about this represents over the next few years? And if you’re thinking about this being an extra layer on top of pharma spend. What kind of — again, I’m not asking here for a 5-year target, but is this a couple of points of growth? Is this just a couple of incremental? How should we think about the opportunity?
Nate Gross: Jack, this is Nate. I can take that one. So we see a bunch of different benefit areas with the portal. I think the first one is going to be faster launches and better alignment with some of the stakeholders in the process, like some of the agencies that are involved in the process. I think that’s going to be across things like lift matching, analytics, making sure that the content can be AI supported. I think there are also advantages in pricing and price discovery that come along with us towards our benefit, easier price increases in addition to discovery. Upsells are certainly one that we’re already starting to see some excitement around, whether that’s relaunching or adding targets, adding modules, expanding existing programs.
And then, really, new sales, both with new clients who we haven’t really been able to work with in the past because their budgets haven’t been quite of the size and capacity to be a good fit for our current sales team, but also actually in entirely different categories of TAM and med devices and digital health and other markets that really haven’t been a core part of our go-to-market. Motion today who are comfortable with these sorts of tools in the markets that they spend in and I think we’d see good ROI from our existing products.
Operator: Our next question is from the line of Jessica Tassan with Piper Sandler. Your line is live.
Jessica Tassan: Hi, thanks for taking my question. I was hoping you guys could provide some color on just how pharma is thinking about the media allocation in an election year. I’m curious if dollars shift to kind of more civilian social media channels and TV or if dollars actually shift to Doximity as TV becomes more expensive. Just hoping for any perspective about whether pharma’s posturing is different at all in an election year.
Jeffrey Tangney: Hi Jess, this is Jeff. We’re certainly no experts on this, but I would say that there hasn’t been much change that we’ve noticed yet. Health care hasn’t made it that high in the ticket yet. And this is a year where we have just a lot of innovation, a lot of new products that are pretty exciting, pretty large. So we’re proud to have three $10 million new brands and our first-ever launch brand at $10 million. So, so far, so good. So far, I think the approach here, especially since we focus on physicians and not on broader consumer, which might see, I think, more election-oriented pressure, we haven’t seen a lot there yet.
Jessica Tassan: Got it. That’s helpful. And then maybe for Anna. I just on the sequential step down in 4Q ’24, I wanted to better understand that. So specifically, excluding the new products, would the sequential growth rate in 4Q ’24 look more like 4Q ’23, kind of down mid-single digits. And then as we think about the launches, given that you have one season of experience with Point of Care, should we just expect the full magnitude of those sales to come online by the fiscal 1Q of next year? And, thanks again.
Anna Bryson: Sure, Jess. So what I’ll say about seasonality is the way our customers purchase and launch their programs has evolved over the past several years. And as a result, we’ve definitely seen some quarterly variations in revenue. So in any given year, there can be seasonality depending on the market dynamics, the economic conditions or even our customer strategy, which is something we’re seeing this year. But we really focus on measuring the success of our business on an annualized basis, which is consistent with how our customers think about their budgets and it’s consistent with how our sales team thinks about their goals. So we’re much more focused on that annual number. And as far as commentary on next quarter, we will give you that update next quarter.
Operator: Hi, your line is live. Go ahead. This is a question from Vikram Kesavabhotla with Baird. Your line is live.
Vikram Kesavabhotla: Okay, great, thanks for taking the questions. My first one is on revenue growth. I guess when you talk about outperforming the market of 5% to 7% in 2024, do you expect the magnitude of outperformance to be similar to what you saw last year? Or is there any reason to think that your share gains will be particularly better or worse than what you experienced in 2023? And then as a follow-up to that, you talked about some of the budgets unlocking later than you initially expected last year. Do you think the cadence of purchasing decisions and behavior is going to be similar again in 2024? Or do you think it’s going to revert closer to the historical seasonality? And I’ll leave it there, thanks.
