Michael Turney

Michael Turney asked for more details on budgeting, specifically if clients are considering changes in allocation due to government hostility towards direct-to-consumer (D2C) advertising, and how Doximity's strategic discussions with clients are evolving given these potential shifts.

Answer

VP of Investor Relations Perry Gold explained that it's early to assess the D2C impact, noting D2C ad dollars are typically controlled by different agencies. He mentioned conversations with large agency partners about potentially shifting D2C ad brands' money to Doximity, but it's too soon to determine success. He confirmed D2C uncertainty is one factor delaying final budget lock-ins.

Michael Turney asked for more details on client budgeting discussions, specifically if Doximity is hearing about changes in allocation strategies, particularly in light of government hostility towards direct-to-consumer (D2C) advertising and its potential impact on HCP market share.

Answer

Perry Gold, VP of Investor Relations, addressed the D2C impact, noting it's early but some brands are revisiting strategies. He mentioned conversations with agency partners about potentially shifting D2C ad dollars to Doximity, acknowledging D2C policy uncertainty as a factor in delayed budget finalization.

Michael Turney inquired about Henry Schein's market share gains, the path to normalized growth, and assumptions for future share gains in merchandise and equipment, especially in light of competitor changes.

Answer

Stanley Bergman, Chairman and CEO, and Ron South, Senior Vice President and Chief Financial Officer, expressed confidence in continued market share gains driven by promotional activities and Henry Schein's comprehensive offering post-cyber incident. They highlighted strong momentum in distribution, equipment, consumables, and software, along with positive supplier and DSO relationships, but did not provide specific 2026 share gain assumptions.

Michael Turney asked about the market environment and Henry Schein's share gains in merchandise and equipment, particularly in the context of a major competitor's structural and management changes. He also sought insight into the assumptions for returning to a normalized growth rate.

Answer

Stanley Bergman, Chairman and CEO, and Ron South, Senior Vice President and Chief Financial Officer, expressed confidence in continued market share gains, driven by promotional activity and the company's strong service offering post-cyber incident. Stanley Bergman highlighted the highly motivated sales organization, improved systems, and strong relationships with suppliers and DSOs as drivers of momentum across distribution, equipment, and consumables.

An associate for Michael Turney asked about the company's approach to cost management in the current volatile environment, specifically questioning the trade-off between cost-cutting measures and making necessary investments for future growth.

Answer

CEO Dr. Steve Cutler emphasized that actively aligning the cost base with the demand environment is a core competency for ICON and is crucial for maintaining margins. COO Barry Bell added that cost control is an ongoing process, not an extraordinary event, and that the company continues to invest in areas with growth opportunities while making appropriate adjustments elsewhere.