Doximity (NYSE:DOCS) is an online networking platform for medical professionals. A majority of doctors in the U.S. are already on the site, and the company continues to roll out new features for members.
In this video from “Beat & Raise” on Motley Fool Live, recorded on Sept. 23, Fool.com contributors Taylor Carmichael and Brian Withers discuss the company’s rapid growth and whether it’s a stock investors should keep an eye on.
Brian Withers: Taylor, we’re going to kick it off with Doximity. Tell us what you like about Doximity, Taylor.
Taylor Carmichael: Well, I actually love Doximity, it’s one of my favorite stocks in the telehealth space. It’s an amazing company, actually. It’s basically Facebook for doctors, LinkedIn for doctors. They provide collaboration online for anybody in the healthcare space. Eighty percent of American doctors are on the platform, 90% of med students are on the platform, literally, they’ve won the race. It’s already over, race done. They’ve won. Now, the question, how are they going to monetize all of those eyeballs. Basically, Facebook junior. It’s a specific niche, very valuable niche. They’ve got three business models. Their first one is marketing to doctors. The doctors are what’s being sold to other people, to healthcare companies, to pharmaceutical companies. That’s No. 1, No. 2 is job placement in healthcare, that’s a big part of their business model, and No. 3, they just rolled it out last year in January, Dialer, which is their telehealth thing that they rolled out to all of their subscribers to enable doctors to meet with their patients online. Dialer was an amazing success. Going to make sure I get these numbers right, 60 million virtual visits. It was so much larger than Teladoc, it blew my mind.
These are free for doctors, the basic service is free, but they upcharge, and it’s really cool for a doctor if you’re talking to your patient online, they don’t see your home phone number, so they can’t bug you in your off hours. It’s all done through the website, so that’s a huge part of their business now. They’re growing by 99%, they’re already profitable. The only really downside that I see to the stock right now is it’s insanely expensive. The market loves it and we bought it in my family a few days after the IPO and it’s already up, whatever it is, 50% or 60%, so it’s already an expensive stock and it will probably be a high-flying stock for the rest of the days. I just think this is going to be a huge name in the telehealth space, and I would urge Fools to take a look at it.
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