So one of the quiet SaaS leaders that has just crushed it in 2024 is Doximity:
- At $550m in ARR, it’s worth a cool $10.4 Billion (!) — or 20x ARR.
- And its stock it up a stunning +90% this year.
What’s going on? A combination of:
- Growth re-accelerating. Doximity is growing 20% now, vs. 18% at $450m ARR.
- Insane profitability. 53% EBITDA. That’s crazy. It rains cash at Doximity.
To oversimplify’s Doximity’s business model, it’s “LinkedIn for Doctors” has almost every U.S. physician on its platform. And in turn, it can charge pharma and other companies $100k+ to reach them.
5 Interesting Learnings:
#1. 80% of U.S. Physicians on Doximity
In vertical SaaS, don’t settle for 20% market share. Or even 50%. Go for all of it. Doximity has 80%.
#2. 53% EBIDTA. And Only 830 Employees at $550m ARR.
How is Doximity so profitable? One way is by only needing 830 employees. That’s a stunning $660,000 in revenue per employee.
#3. 103 $500k+ Customers. Key is Land-and-Expand.
It’s growing its biggest customer count +12% a year. Combine that with 116% NRR (next point), and you hit +20% growth. That’s SaaS math.
#4. 116% NRR Overall, 124% From Top Customers
Doximity can only add so many more physicians to its network, with 80% share. But it can sell more to those that want to reach them. It now sells 3 products, leading to 126% NRR from its top customers.
#5. Durable 36% Compounded Growth
In 2019, Doximity was doing $86m ARR. Fast forward to today, it’s at $550m ARR. Not every year was a total blow-out. But compound that growth over 6+ years, and you have something pretty special. Especially with those profit margins.
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- Source: https://www.saastr.com/5-interesting-learnings-from-doximity-at-550000000-in-arr/