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Doximity Business Model: How Does Doximity Make Money?

Doximity is an online networking service tailored for medical professionals, offering a platform for communication, medical news, telehealth tools, and case collaboration. Founded in 2010 by co-founders Nate Gross, Jeff Tangney, and Shari Buck, the platform has grown significantly over the years and serves as a vital resource for healthcare professionals in the United States.

How Does Doximity Make Money?

Doximity Business Model & Growth


Doximity's rapid growth highlights its significance in the medical community. It boasted around 10% of U.S. doctors as members in 2013, which surged to 40% by early 2014.


In 2018, Doximity reached a milestone of 1 million members, encompassing over 70% of U.S. physicians. Today, it caters to more than 2 million registered members, including over 80% of U.S. physicians, as well as over 50% of nurse practitioners and physician assistants.


Expansion and Achievements


Doximity's success extends beyond its user base. In 2016, it was ranked #6 on the Deloitte Technology Fast 500 list, and it consistently made appearances on this list in subsequent years. The company also expanded its services, launching Dialer Video in May 2020 for telehealth consultations and acquiring THMED, which later became Curative, specializing in medical staffing and recruiting.


Doximity's Offerings


Doximity provides a range of tools and services for medical professionals:

  • Dialer Voice: In 2016, Doximity introduced Dialer, a free communication tool allowing physicians to call their patients from their personal cell phones while displaying the doctor's office number on caller ID.

  • Dialer Video: Launched in May 2020, Dialer Video enables physicians to conduct video consultations with patients using their smartphones. By July 2020, over 100,000 U.S. doctors were using this telemedicine app.

  • Search, find, and connect healthcare providers instantly.

How Does Doximity Make Money? Revenue Streams


Doximity's revenue model is primarily subscription-based and encompasses several key areas:


Subscription-Based Ad Placement


A significant portion of Doximity's revenue comes from subscription fees charged to pharmaceutical companies and health systems for placing targeted advertisements on its platform. These ads are displayed in users' newsfeeds, ensuring highly specific targeting and compliance with regulations.


Offering TeleHealth Products


Doximity introduced various telehealth products serving health systems, medical groups, and individual practitioners. Customers pay subscription fees for access to these telehealth tools, with pricing models dependent on the type of customer and services required.


Recruitment Platform to Hire Medical Practitioners


Similar to LinkedIn, Doximity offers hiring solutions that allow health systems and medical recruitment firms to find and connect with medical practitioners. Subscription fees are charged to these companies for using the platform's recruitment services.


Doximity Financial Performance


Doximity's revenue continued its strong growth trajectory in the twelve months ending June 30, 2023, with year-over-year growth of 20.85%. The company's quarterly revenue of $108.47M in the same period also showed healthy growth of 19.67%. Doximity's fiscal year 2023 revenue of $419.05M, which ended March 31, 2023, also reflected strong growth of 21.98%.

Doximity Revenue - Annual

​Fiscal Year End

Revenue

​Mar 31, 2023

419.05M

Mar 31, 2022

343.55M

Mar 31, 2021

206.90M

Mar 31, 2020

116.39M

​Mar 31, 2019

85.70M

Doximity Funding Rounds


Doximity raised a total of $81.8 million in venture funding from various investors before going public in June 2021, where it raised an additional $605.8 million.

VC Funding Rounds

Amount Raised

Series A

$10.8M

Series B

$17M

Series C

$54M

Key Investors


Doximity's key investors include:

  • InterWest Partners

  • Morgenthaler Ventures

  • Emergence

  • T. Rowe Price

  • Morgan Stanley

Acquisitions


Doximity has made three acquisitions to date:

  • THMED (June, 2020)

  • Curative (June, 2020)

  • Amion (Feb, 2022)

Doximity IPO


In June 2021, Doximity made its initial public offering (IPO) and raised nearly $606 million by selling 23.3 million shares, solidifying its position as a significant player in the healthcare technology sector.


Frequently Asked Questions


1. What is Doximity, and what does it offer to medical professionals?


Doximity is a US-based online networking service designed for medical professionals. It offers a platform for healthcare providers to connect with each other, access curated medical news, collaborate on cases, and utilize telehealth tools.


2. What is Doximity's business model?


Doximity operates on a subscription-based business model. It generates revenue through advertising for pharmaceutical companies and health systems, recruitment services for healthcare organizations, and subscription-based telemedicine tools. These revenue streams contribute to Doximity's financial success and growth.


3. What is the revenue of Doximity?


Doximity's revenue has grown rapidly in recent years. In fiscal year 2023, the company's revenue was $419.05 million, up 21.98% from the previous year.



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