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IPO Doximity

Digital healthcare platform
IPO
Medium risk

Revenues in 2020-2021

Invest in IPO Doximity

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
The Company

San Francisco, California-based Doximity was founded to help physicians to be more productive by providing them with information and tools for their practice. Doximity developed the leading digital platform for U.S. medical professionals with over 1.8 million members.

At the beginning of 2020 the company started to provide Telehealth Solution for health systems. It includes a voice and video dialer, designed to easily connect patients with care providers. With Doximity platform over 63 million telehealth visits were delivered in fiscal 2021.

Market Opportunity

The global market for healthcare IT was an estimated $74 billion in 2020 and is forecast to reach $167 billion by 2028. This represents a forecast CAGR of 10.7% from 2021 to 2028. The main drivers for this expected growth are growing network coverage and improvement in network infrastructure along with higher demand for preventive care. Additionally, the COVID-19 pandemic has provided a boost to telehealth capabilities demand as well as other remote technologies.

The company has created an ecosystem in the medical community where all players benefit from powerful network effects. This creates a lock-in effect, which is evidenced by the net retention rate of 153%.

Risks

Clients of Doximity are large companies and medical institutions, so the profits of the company are concentrated and depend on the retention of key clients. The largest customer accounts for 12% of the company’s total revenue.

The company competes with various groups of players, such as Linkedin, Facebook, or Twittter, who partially cover Doximity’s functions in the field of professional interaction. On the other hand, it competes with companies providing digital healthcare solutions such as TeleDoc, Zocdoc, or American Well, as well as communications companies such as Zoom Video.

Financials

Doximity plans to raise $501 million by offering 23.3 million shares (18% insider) at a price range of $20 to $23. At the midpoint of the proposed range, the company would command a fully diluted market value of $4.5 billion. It plans to list on the NYSE under the symbol DOCS. Morgan Stanley, Goldman Sachs, J.P. Morgan, Piper Sandler, William Blair, Canaccord Genuity, Needham & Co., Raymond James, and SVB Leerink are the joint bookrunners on the deal.

Doximity’s recent financial results show sharply growing topline revenue. Over the last year, the company’s revenue has grown by 78%, to $207 million. Moreover, Doximity shows a growing net profit. For the fiscal year ended March 2021, it was $50,000.

Valuation of a company on IPO gives a multiplier P/S of к19.3x. Its public competitor, Teladoc Health (TDOC), trades with 18x multiplier, however, it is still unprofitable and accumulates net losses every year. Also its gross margin 20% lower than those of Doximity. Given the company’s leading position and strong financial results, Doximity is an interesting investment idea. The expected yield is 80% annualized.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
22 Jun
Threshold amount
$50
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
22 Jun
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
24 Jun
Return forecast
Medium (up to 80%)
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
27 Sep
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO Doximity

This investment idea is no longer available. New applications are not accepted

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