Anna Bryson: Sure, Vikram. Once again, I’ll say it’s too soon for us to comment on fiscal 2025. So I’m not going to go too in depth there. But what I will say is that we’re really excited about the scale of buying we saw on our platform during the upfront season. We absolutely believe we could continue to outperform the market. To what magnitude? We will give you an update on that next quarter. But we’re really encouraged to have at 75 brands at this point, spending over $1 million with us, which is an increase of 30% year-over-year. I think that just speaks to the interest customers have with Doximity and the value they’re receiving from our platform. And so we’re really excited about the growth we’re seeing, but we’ll give further details on how big that is next quarter.
Operator: Our next question is from the line of Scott Schoenhaus with KeyBanc. Your line is live.
Scott Schoenhaus: Hi, team. Thanks for taking my question. I guess, first on mid-year upsell this past year. Is there a way to quantify, even if it’s in a range, how much market share you lost during this past year’s mid-year upsell because you didn’t have the self-service portal. And then a follow-up would be, as you think about increasing the-your current client from 10% onwards throughout the mid-year upsells that are using the portal. Does that give you more visibility into revenue? Thanks.
Jeffrey Tangney: Yes, this is Jeff. I’ll take it. We don’t have an exact estimate of market share through the midyear cycle. There’s just not many data sources that break that out that granularly. So unfortunately, I don’t have an exact answer for you on a number of points of share there. With regard to overall visibility, I mean, I think we, as Anna said, we’ll begin this next year with more visibility, a greater percent under contract than we ever have before. And I think that’s again a good sign long term that our clients choose to partner with us over the longer term and are willing to commit and spend more upfront with us. Again, we’re not giving longer-term guidance here. Again, we’re just being more caution longer, and this speaks to, I think, our change here in terms of just more conservatism in understanding that we are in a very uncertain market for a lot of reasons that our exogenous to us.
Operator: Our next question is from the line of Craig Hettenbach with Morgan Stanley. Your line is live.
Craig Hettenbach: Yes, thanks. I had a question on the video modules. At the Analyst Day, you had kind of framed it as potentially getting to like 15% of the mix five years out. I know you don’t have long-term targets now, but is that a way to still think about it in terms of contribution over time and how you see these modules ramping?
Anna Bryson: Sure, Craig. So we’re not going to give an update this early on the long-term target there. But we’re really encouraged by the way they’ve ramped growing over 100% year-over-year and really the second year we’re selling them. One of the things I’ll say about on a go-forward basis is as we continue to focus on a packaged approach to selling modules, it’s unlikely that we’ll be breaking them out quite — in quite as much detail because this packaged approach is really, as Nate mentioned, the client buying Doximity as a whole. So we’re thinking about it that way as opposed to on an individualized ala carte module basis.
Craig Hettenbach: Understood, thanks. And then just as a follow-up on capital allocation, you use very strong cash flow and a good balance sheet to buy back stock. Just curious what the opportunity set is out there for potential tuck-in deals? Is that something you would still evaluate in terms of adding capabilities to the platform?
Nate Gross: Thanks, Craig, this is Nate. Yes, so we have great active exposure to opportunities in the market right now. We’re going to be opportunistic. But I think, as you know, our culture going back 14 years now is a disciplined and value sensitive and really internal R&D forward as ever. So we’re lucky to be able to make all these decisions with a high-quality bar and a focus on platform fit, which we’ve done with acquisitions like say, Amion, but not really forced into inorganic revenue growth. So we’re going to be real thoughtful about that use of cash. I think the market’s become more interesting in many ways lately. But it’s always going to be with a mind towards building our flywheel to address our market opportunities and serve the doctors.
Operator: Our next question is from the line of Stan Berenshteyn with Wells Fargo Securities. Your line is live.
Stan Berenshteyn: Hi, thanks for taking my questions. Maybe a couple on the newer modules. So first, if we just think about the year-on-year growth in the quarter, about $20 million incremental, how much of that was driven by the new module sales?
Anna Bryson: Once again, we’re selling our new modules on more of a packaged basis. So we do not intend on giving that breakout. As I mentioned, new modules grew nicely, but we also saw really nice growth amongst some of our larger brands and a continued growth in that $10 million-plus cohort. But we aren’t going to give any further detail on new modules specifically there.
Stan Berenshteyn: Okay. That’s fair. I guess in the prepared remarks, you indicated modules kind of fall outside of the traditional marketing budgets. And I guess if it’s not the traditional market or considerations, what considerations are driving the decisions to purchase these new modules? And does packaging these modules in kind of like this bundled solution now push them into a traditional budget consideration? Thanks.
Jeffrey Tangney: Hi Stan, this is Jeff. I’ll take that. So the short answer is we are pulling from new budget lines with these new modules. So it’s peer-to-peer med affairs, dinners, a lot of traditional things that pharma have done that are thankfully becoming more digital because as many doctors are going to give up a whole evening to go to a 4-hour or 3-hour dinner anymore. So we are pulling from some of those other budgets outside our core marketing budgets. The other thing I’ll just say in regarding the new modules is so far, they’ve been primarily sold to our top 20 clients, our biggest best clients, the ones who’ve been working with us the longest. And if you’re following along on the net revenue retention rates, the NRRs, you can see that we did increase slightly this last quarter on these, which I think is a strong sign that we’re doing a great job of landing and expanding, especially the expanding, and we’re just pleased that we have yet to, I think, really hit a glass ceiling inside any of these mega top 5, top 10 pharmaceutical companies or other large players.
And we think there’s a real opportunity to, again, land more with the portal, increase that long tail, that SMB play, where we do have a lower market share today because we do have a high minimum to work with us that is above what many folks will do. And frankly, we don’t have as strong a sales motion to go meet with all of those medical device and digital health and other companies that Nate had mentioned.
Stan Berenshteyn: Thanks.
Operator: Our next question is from the line of David Larson with BTIG. Your line is live.
David Larsen: Hi, congrats on a good quarter. With regard to the patient portal and the real-time ROI analysis, can you maybe talk a little bit more about that? Like how many of your 1 million-plus or $10 million plus brands are actually using that. It seems like it’s very important. And then with the IQVIA data. IQVIA obviously has a very sophisticated advanced CRM platform where they can actually identify, okay, which doctors would benefit from the products? Who the patients are? Where they are? I mean, are you somehow linked in with IQVIA to basically line up meetings and sell the brand products. Thanks very much.
Jeffrey Tangney: Thanks, David. This is Jeff. Yes. So I’ll say I’m very excited about the ROI portion of the portal. So a few things. First, it’s not a patient portal. There’s no patient level data in it. But we do license in prescription level data that is at a physician level from the companies that are leaders in the space that you’ve mentioned. And that’s a big unlock for our clients because they would usually wait months to go be able to have some custom project to put that data together and to try to optimize their marketing and understanding where they’re doing well and where they’re doing — not doing as well. And that’s one of the quotes I called out in my prepared remarks that it’s really exciting to be able to look at this on a week-to-week, month-to-month basis.
And of course, we could add a whole new level of insight to it because we know what words are being used with which physicians and what subcategories or subsegments may make more sense. So really helping getting the most relevant message to the right doctors. For example, what payers or formularies they may deal with. So anyway, for all these reasons, we think that the level of insight that our portal is providing to our clients is something that is market-leading and will again be another reason for them to spend more with us.
David Larsen: Okay. And then since you mentioned the formulary, that’s obviously another very, very important area because the doctors want to know where they’re going to get paid, especially with many of these high-cost drugs. You could be talking tens or even hundreds of thousands of dollars for certain medications. So can you maybe just talk a little bit more about where that formulary product stands now? What does it do? And then going forward, like what would your vision be for that? Like in an ideal world, would you be able to say, “Okay, if this drug is on formulary. This one isn’t. Use that one?” Just any thoughts there would be very helpful.
Jeffrey Tangney: I think, David, yes, you’re hitting my hot point here because the formulary product has done very well. And I think it’s an area where we have invested over the past year, making it more turnkey, easier for our clients to work with us. We’ve essentially gone out and licensed in the two leading data sets here. So we know which plans are covered by which doctors and which brands are covered by which plans, so that we can serve up for an individual physician that their patient doesn’t have a high co-pay on this medication. And of course, that’s great news for our clients, great news for the doctors, great news for the patients who need that medication. And we’re able to do that again on a personalized level, doctor by doctor.
And it used to be — when we tried to sell this originally that the clients, the pharma companies would have to give us all the data that they would have to tell us which plans that they had coverage on and not. And that ended up slowing things down. It took longer to launch and wasn’t as turnkey for them. So I do think this is an example of us using technology, doing some smart licensing to be able to deliver a more personalized, more effective message, more quickly for our clients. And it’s the type of thing that the portal will do more of.
Operator: Thank you. And we have a final question today from the line of Eric Percher with Nephron Research. Your line is live.
Eric Percher: Thank you. Jeff and Nate, I would like to ask you to connect the dots a bit on the approach to the portal from early in the year to the phased approach we’re hearing today? And specifically for the larger core clients, not the tail or med tech, how has your thoughts — how have your thoughts evolved on the sales relationship and how it changes as the portal comes into play?
Jeffrey Tangney: Thanks, Eric. Yes, welcome to the call. I don’t think our plan here has changed much from when we spoke about it last August, where our plan is to continue to be both high tech and high touch. We work with very large organizations who do expect, I think, a certain level of white glove consulting, strategic services. And I think it’s great that we’ll be able to continue to do that. But for the more, I’d say, mundane things like the refresh of last week’s reports, they don’t need to schedule a separate video call and e-mail us five times and so forth. So I’d say we’ve evolved very little here, but we built quite a lot. And what we’ve built is the ability, again, for our clients to see all this. We’ve got it rolled out to 10% of them now.
Their early reviews, again, have been very strong. So we’re excited to get this out to more of them this year. But again, we’re doing it carefully, because at the end of the day, if a client wants to do all this the way they’ve been doing it the last five years, we’ll continue to do that. We want to make sure that we, again, have a high tech and a high touch relationship.
