Doximity Doubles in Trading Debut After IPO Raises $606 Million


Health-care platform Doximity Inc. rocketed 104% in its trading debut after it priced its initial public offering above range to raise $606 million.

Shares of the profitable San Francisco-based company closed Thursday at $53 apiece, giving the company a market value of $9.5 billion. The company and one of its investors sold 23.3 million shares for $26 each Wednesday after marketing them for $20 to $23.

Accounting for employee stock options, the company is valued on a fully diluted basis of about $11.4 billion.

More than 80% of U.S. doctors use Doximity’s platform designed for medical professionals, the company said in its filings with the U.S. Securities Exchange Commission. Its platform includes video calling for telemedicine as well as secure messaging and a directory of clinicians. Doximity also provides a news feed with medical stories.

The company’s top shareholders are co-founder and Chief Executive Officer Jeff Tangney and affiliates of Emergence Capital Partners, InterWest Partners and Morgenthaler Venture Partners, according to its filings. InterWest sold about 4.3 million Class A shares in the IPO.

“Adoption of their workflow-oriented features has grown quite a bit since Covid started,” said Kevin Spain, general partner at Emergence Capital. “There’s so little that’s been built to truly help doctors with what they want to do.”

Doximity has been expanding its platform to include nurse practitioners, Tangney said in an interview.

“We do see opportunities to move into other health-care professions,” he said.

Overall, though, Doximity is focused on encouraging current members use the platform more frequently, Tangney said.

Doximity reported $50 million in net income on $207 million in revenue for the year ended March 31. The business had almost $30 million in net income on $116 million in revenue for the same period the year before.

The offering was led by Morgan Stanley, Goldman Sachs Group Inc., and JPMorgan Chase & Co. Its shares are trading on the New York Stock Exchange under the symbol DOCS.

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