Did you know there is a “LinkedIn for Doctors”? That is doing $450,000,000 in ARR … growing a fairly mature 18%, but at an insane profitabilty level with a 43% (!) adjusted EBIDTA margin?
Well, there is.
It’s called Doximity and it’s worth $6.5 Billion Dollars. That’s 12x ARR even with fairly mature growth. Why? Profits. Lots and lots of profits.
5 Interesting Learnings:
#1. 80% of All U.S. Physicians in Their Network. This turbocharged Doximity’s growth, but truly hitting 80% of your ecosystem has lead to slowing growth as they approach $500m in ARR.
#2. 290 $100,000+ Customers. That’s how they’ve built up to something big.
#3. Insanely Profitable — At Scale. While Doximity was EBITDA positive back in 2019, it really exploded as the business scaled. Today, it’s on track to generate $181,000,000 in EBITDA in 2023. Boom!
#4. The company sells Marketing Solutions and Hiring Solutions — just like LinkedIn, but just for Doctors. Marketing contracts are short, typically less than 1 year. Hiring Solutions deals are usually 1 year at a time.
#5. NRR has Gone from Insane to Merely Very Good. NRR has dropped to a still strong 119% — from an insane 171% in 2021.
And a few extra notes:
#6. 978 employees, so over $400,000 in revenue per employee. This is much higher than the $250,000 or so we often see for public SaaS companies … hence the profitability.
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via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
