Good morning,
“The physician is at the core of what we do. They’re our largest investor in the IPO, which I think is really remarkable,” says Anna Bryson, CFO at Doximity, which debuted June 24 on the New York Stock Exchange under the ticker DOCS.
Doximity is a San Francisco-based online telehealth and networking platform for physicians. Think of it as a LinkedIn for doctors. It has 1.8 million members, as of March 31, 2021, including more than 80% of doctors across all 50 states, according to the company’s prospectus. “Our customers include all the top 20 pharmaceutical manufacturers, and all of the top 20 health systems as well,” Bryson says.
The initial IPO price was expected to be between $20 and $23 per share. But Doximity announced June 23 an increase to $26 per share with expected gross proceeds of $494.3 million. However, the stock basically doubled in its debut closing at $53.89. At the close on June 25, the stock reached $55.98 per share.
Instead of offering friends and family stock shares as an IPO option, “we had over 10,000 physicians participate in our reserved share program” at $26 a share, Bryson says.
About a year ago, Doximity started prepping for an IPO with bankers Morgan Stanley, JP Morgan Chase, and Goldman Sachs leading the process, she says. The 11-year-old company waited to pursue an IPO until it built a “meaningful business of scale,” says Bryson who took over the CFO role in February but has been with the company for about four years, previously VP of strategic finance and FP&A. “We think at this point with over $200 million in revenue and 31% EBITDA margins, we’re not only growing fast, but we’re growing profitably. It’s the right time for our company to pursue this next path,” she says.
Doximity’s plaform experienced high usage during the COVID-19 pandemic as the crisis “forced physicians to be completely mobile,” Bryson says. “Physicians are used to having more antiquated technology and using things like the fax machines, and [the pandemic] forced them to work from home with their cell phones and their laptops,” she says.
Doctors had already been using the Doximity Dialer to call their patients, and the company added a video functionality as well. It essentially became a telehealth hub for physicians, Bryson says.
“Health care is an industry that’s long been very under-indexed on digital spending, and it’s really in the midst of a digital transformation,” she says.
See you tomorrow.
Sheryl Estrada
sheryl.estrada@fortune.com
Big deal
The Workforce Institute at UKG's new report gauges the "gap between employee voice and employer action" that can lead to low engagement and turnover, if left unresolved. A survey of more than 4,000 employees across 11 countries found that 86% of respondents said individuals at their organization are not heard equally or fairly by employers. Some respondents even said they'd rather quit than voice concerns to management.
Going deeper
Supply chains will be forced to continuously adapt due to the COVID-19 pandemic, according to Change of Plans, an annual State of Logistics report. The research found that last year, U.S. business logistics costs decreased by 4% to $1.56 trillion, or 7.4% of 2020's $20.94 trillion gross domestic product. Many global supply chains were continually forced to "screech to a halt" and restart, multiple times. Home improvement, grocery retail, and e-commerce prospered. For example, e-commerce purchases increased by 33% to $792 billion, which represented about 14% of all retail sales. The report is produced for the Council of Supply Chain Management Professionals by global consulting firm Kearney and presented by Penske Logistics.
Leaderboard
Kathy Buckley was named CFO at Ruby Tuesday, a national casual dinning restaurant chain. Buckley has more than 35 years of finance experience working in retail and restaurant industries, including Bruegger’s Bagels, The Rug Doctor, and RadioShack.
Rebecca Garbrick was named treasurer and CFO at Forward Air Corporation, an asset-light freight and logistics company, effective July 4, 2021. Garbrick joined the company in November 2020 as VP and controller before taking on the role of chief accounting officer in March 2021.
Overheard
"Are there benefits? Yes, lots. Are there consequences? No, none."
—El Salvador President Nayib Bukele said during a televised speech he will give $30 U.S. dollars worth of Bitcoin to adult citizens of the Central American country who download and use the crypto app, Chivo, as reported by Fortune.
