Latest news with #JeffTangney
National Post
4 days ago
- Business
- National Post
Doximity Acquires Pathway, a Leader in AI Clinical Reference
Article content $63M acquisition brings physician AI team and datasets to Doximity's AI suite Article content SAN FRANCISCO — Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced that it has acquired Pathway Medical Inc., a Montreal-based startup specializing in medical AI and evidence-based clinical reference. Article content Article content Physicians make up half of Pathway's team. Over the past seven years, they've assembled one of the largest structured datasets in medicine—purpose-built for AI—spanning nearly every guideline, drug, and landmark trial across all major specialties. Pathway's model outperforms others in clinical accuracy, recently scoring a record 96% on the U.S. Medical Licensing Examination (USMLE) benchmark. Article content 'We're thrilled to welcome the Pathway team to Doximity,' said Jeff Tangney, co-founder and CEO of Doximity. 'They've painstakingly built one of the best datasets in medicine, and it's going to take our clinical reference capabilities to an entirely new level.' Article content 'There's a growing need for clinical tools that combine trusted evidence with the speed and adaptability of AI,' said Jon Hershon, CEO of Pathway. 'Hundreds of thousands of users have registered for Pathway, and thousands pay $300 per year for our premium product. With Doximity, one of the most trusted platforms in healthcare, we're now bringing that experience to millions for free, built directly into the tools they already use at the point of care.' Article content The transaction closed on July 29, 2025 for cash consideration of $26 million and up to $37 million in additional equity grants. Article content About Doximity Article content Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients. Article content About Pathway Article content Pathway helps clinicians deliver better, faster, more informed care by providing instant and evidence-based answers to medical questions. The AI-powered platform has hundreds of thousands of registered users, with a strong presence in the U.S. and internationally. The company is headquartered in Montreal, Canada. Article content Article content Article content For investors: Article content Article content Perry Gold Article content Article content Article content
Business Wire
4 days ago
- Business
- Business Wire
Doximity Announces Fiscal 2026 First Quarter Financial Results
SAN FRANCISCO--(BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2026 first quarter ended June 30, 2025. 'We began our year with strong profit growth and record engagement across our newsfeed, workflow, and AI products,' said Jeff Tangney, co-founder and CEO of Doximity. 'Our AI suite once again grew the fastest, up 5x year-over-year, while more than 630,000 prescribers used our workflow tools to save time and better serve their patients.' Doximity Acquired Pathway Medical: More information can be found in the press release at Fiscal 2026 First Quarter Financial Highlights All comparisons, unless otherwise noted, are to the three months ended June 30, 2024. Revenue: Revenue of $145.9 million, versus $126.7 million, an increase of 15% year-over-year. Net income and non-GAAP net income: Net income of $53.3 million, versus $41.4 million, representing a margin of 36.5%, versus 32.7%. Non-GAAP net income of $71.9 million, versus $55.9 million, representing a margin of 49.2%, versus 44.1%. Adjusted EBITDA: Adjusted EBITDA of $79.8 million, versus $65.9 million, an increase of 21% year-over-year, representing adjusted EBITDA margins of 54.7%, versus 52.0%. Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.27, versus $0.21, while non-GAAP diluted net income per share was $0.36, versus $0.28. Operating cash flow and free cash flow: Operating cash flow of $62.1 million, versus $41.2 million, an increase of 51% year-over-year, and free cash flow of $60.1 million, versus $39.5 million, an increase of 52% year-over-year. Financial Outlook Doximity is providing guidance for its fiscal second quarter ending September 30, 2025 as follows: Revenue between $157 million and $158 million. Adjusted EBITDA between $87 million and $88 million. Doximity is updating guidance for its fiscal year ending March 31, 2026 as follows: Revenue between $628 million and $636 million. Adjusted EBITDA between $341 million and $349 million. Conference Call Information Doximity posted prepared remarks on its investor relations website at Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company's Investor Relations page at The archived webcast will be available on the Company's Investor Relations page shortly after the call. About Doximity Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients. Forward-Looking Statements Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' 'may,' 'plans,' 'projects,' 'seeks,' 'should,' 'will,' and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including (i) the timing and scope of anticipated stock repurchases; (ii) the impact of uncertainty in the current economic environment and macroeconomic uncertainty; (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members' interests; (vi) breaches in our security measures or unauthorized access to members' data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control including, without limitation, those set forth in the section entitled 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and as may be updated in any subsequent Quarterly Reports on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management's beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. DOXIMITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended June 30, 2025 2024 Revenue $ 145,913 $ 126,676 Cost of revenue (1) 15,793 13,550 Gross profit 130,120 113,126 Operating expenses (1): Research and development 26,799 22,574 Sales and marketing 36,365 35,244 General and administrative 12,439 9,255 Total operating expenses 75,603 67,073 Income from operations 54,517 46,053 Other income, net 9,630 7,116 Income before income taxes 64,147 53,169 Provision for income taxes 10,827 11,792 Net income $ 53,320 $ 41,377 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.28 $ 0.22 Diluted $ 0.27 $ 0.21 Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: Basic 187,984 185,610 Diluted 201,158 199,224 Expand (1) Costs and expenses include stock-based compensation expense as follows (in thousands): Three Months Ended June 30, 2025 2024 Cost of revenue $ 2,980 $ 2,894 Research and development 6,649 4,684 Sales and marketing 7,710 6,586 General and administrative 4,526 2,926 Total stock-based compensation expense $ 21,865 $ 17,090 Expand DOXIMITY, INC. (in thousands) (unaudited) Three Months Ended June 30, 2025 2024 Cash flows from operating activities Net income $ 53,320 $ 41,377 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,794 2,562 Stock-based compensation, net of amounts capitalized 21,865 17,090 Non-cash lease expense 450 481 Accretion of discount on marketable securities, net (2,488 ) (2,360 ) Amortization of deferred contract costs 3,896 2,726 Other (408 ) (536 ) Changes in operating assets and liabilities: Accounts receivable (13,381 ) (19,372 ) Prepaid expenses and other assets (4,234 ) 10,460 Deferred contract costs (1,965 ) (1,431 ) Accounts payable, accrued expenses and other liabilities (165 ) (12,942 ) Deferred revenue 2,973 3,704 Operating lease liabilities (556 ) (516 ) Net cash provided by operating activities 62,101 41,243 Cash flows from investing activities Internal-use software development costs (1,966 ) (1,704 ) Purchases of marketable securities (139,934 ) (170,413 ) Maturities of marketable securities 144,579 202,058 Net cash provided by investing activities 2,679 29,941 Cash flows from financing activities Proceeds from issuance of common stock upon exercise of stock options and common stock warrants 2,398 2,551 Taxes paid related to net share settlement of equity awards (11,927 ) (2,394 ) Repurchase of common stock (122,355 ) (51,214 ) Payment of contingent consideration related to a business combination (5,249 ) (5,470 ) Net cash used in financing activities (137,133 ) (56,527 ) Net increase (decrease) in cash and cash equivalents (72,353 ) 14,657 Cash and cash equivalents, beginning of period 209,614 96,785 Cash and cash equivalents, end of period $ 137,261 $ 111,442 Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds $ 4,978 $ 12,907 Expand Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ('GAAP'), the Company uses the following non-GAAP measures of financial performance: Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of acquisition and other related expenses, stock-based compensation expense, amortization of acquired intangible assets, and change in fair value of contingent earn-out consideration liability from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue. Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue. Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment and internal-use software development costs. We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results. Key Business Metrics Net revenue retention rate: Net revenue retention rate is calculated by taking the trailing 12-month ('TTM') subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates. Customers with trailing 12-month subscription revenue greater than $500,000: The number of customers with TTM subscription revenue greater than $500,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments. The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Three Months Ended June 30, 2025 2024 (unaudited) (in thousands) Net cash provided by operating activities $ 62,101 $ 41,243 Internal-use software development costs (1,966 ) (1,704 ) Free cash flow $ 60,135 $ 39,539 Other cash flow components: Net cash provided by investing activities $ 2,679 $ 29,941 Net cash used in financing activities $ (137,133 ) $ (56,527 ) Expand Three Months Ended June 30, 2025 2024 (unaudited) (in thousands, except per share data and percentages) GAAP cost of revenue $ 15,793 $ 13,550 Adjusted to exclude the following: Stock-based compensation (2,980 ) (2,894 ) Non-GAAP cost of revenue $ 12,813 $ 10,656 GAAP gross profit $ 130,120 $ 113,126 Adjusted to exclude the following: Stock-based compensation 2,980 2,894 Non-GAAP gross profit $ 133,100 $ 116,020 GAAP gross margin 89.2 % 89.3 % Non-GAAP gross margin 91.2 % 91.6 % GAAP research and development expense $ 26,799 $ 22,574 Adjusted to exclude the following: Stock-based compensation (6,649 ) (4,684 ) Non-GAAP research and development expense $ 20,150 $ 17,890 GAAP sales and marketing expense $ 36,365 $ 35,244 Adjusted to exclude the following: Stock-based compensation (7,710 ) (6,586 ) Amortization of acquired intangibles (1,002 ) (1,061 ) Change in fair value of contingent earn-out consideration liability (168 ) (202 ) Non-GAAP sales and marketing expense $ 27,485 $ 27,395 GAAP general and administrative expense $ 12,439 $ 9,255 Adjusted to exclude the following: Acquisition and other related expenses (428 ) — Stock-based compensation (4,526 ) (2,926 ) Non-GAAP general and administrative expense $ 7,485 $ 6,329 GAAP operating expense $ 75,603 $ 67,073 Adjusted to exclude the following: Acquisition and other related expenses (428 ) — Stock-based compensation (18,885 ) (14,196 ) Amortization of acquired intangibles (1,002 ) (1,061 ) Change in fair value of contingent earn-out consideration liability (168 ) (202 ) Non-GAAP operating expense $ 55,120 $ 51,614 GAAP operating income $ 54,517 $ 46,053 Adjusted to exclude the following: Acquisition and other related expenses 428 — Stock-based compensation 21,865 17,090 Amortization of acquired intangibles 1,002 1,061 Change in fair value of contingent earn-out consideration liability 168 202 Non-GAAP operating income $ 77,980 $ 64,406 GAAP net income $ 53,320 $ 41,377 Adjusted to exclude the following: Acquisition and other related expenses 428 — Stock-based compensation 21,865 17,090 Amortization of acquired intangibles 1,002 1,061 Change in fair value of contingent earn-out consideration liability 168 202 Income tax effect of non-GAAP adjustments (1) (4,927 ) (3,854 ) Non-GAAP net income $ 71,856 $ 55,876 Non-GAAP net income margin 49.2 % 44.1 % Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: Non-GAAP net income per share attributable to Class A and Class B stockholders: Basic $ 0.38 $ 0.30 Diluted $ 0.36 $ 0.28 Expand (1) For the three months ended June 30, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%. 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CNBC
4 days ago
- Business
- CNBC
Doximity buys Pathway Medical for $63 million to help doctors get AI-powered answers
Doximity is diving deeper into artificial intelligence, announcing on Thursday the acquisition of startup Pathway Medical for $63 million. Pathway has built an AI-powered clinical reference tool that doctors can use to ask questions about guidelines, drugs and trials. Pathway's answers are synthesized from medical literature, and Doximity said the Montreal-based startup has one of the largest structured datasets in medicine. Doximity's platform, which for years was described as LinkedIn for doctors, helps clinicians stay current on medical news, manage paperwork, find referrals and carry out telehealth appointments with patients. Through its acquisition of Pathway, Doximity hopes doctors will also turn to the platform to answer their clinical questions. "We hunted high and low, and I think we found the best company in the space at answering physicians' questions using AI, and it wasn't in Silicon Valley," Jeff Tangney, Doximity's co-founder and CEO, told CNBC in an interview. The deal closed in late July for a cash consideration of $26 million and up to $37 million in additional equity grants, Doximity said. Doximity's integration with Pathway is well underway, Tangney said, and the companies are testing a combined product with thousands of doctors. Doximity already has a free AI product, Doximity GPT, that doctors can use to generate insurance letters and summarize patient charts and reports. Pathway will bring additional "robustness" to the data that Doximity has on the back end, said Dr. Amit Phull, Doximity's chief clinical experience officer. "What Pathway brings to this party or this marriage is that they have a very, very robust back-end data set that ties dosages to guidelines to literature to citations," Phull told CNBC in an interview. Pathway's model scored 96% on the U.S. Medical Licensing Examination benchmark, Doximity said, which doctors have to take to prove that they understand and can apply medical knowledge. Doximity, which went public in 2021, has seen its stock climb 8% this year after soaring 90% in 2024. The company has a market cap of about $11 billion. Doximity is holding its quarterly conference call with investors to discuss its fiscal first-quarter results on Thursday at 5 p.m. ET.
Yahoo
26-06-2025
- Business
- Yahoo
Does DOCS' Shift Toward Enterprise Offerings Signal a Long-Term Pivot?
Doximity DOCS is gradually transforming from a physician-focused social network into a broader healthcare technology platform. This shift is increasingly anchored in enterprise offerings — workflow tools, integrated programs and AI-powered solutions — which now play a central role in the company's growth narrative. On its fourth-quarter FY2025 earnings call, management emphasized strong traction in workflow tools, such as telehealth, secure fax, scheduling and its fast-growing AI documentation assistant. These offerings reached over 620,000 unique prescribers in the quarter, with AI usage growing more than fivefold year over year. CEO Jeff Tangney described these capabilities as part of a longer-term evolution, positioning enterprise tools as Doximity's 'second act,' following its original focus on pharmaceutical marketing. Enterprise offerings bring multiple strategic advantages — stickier revenues, larger contracts, and better visibility. For instance, integrated, multi-module are now being launched in January instead of later in the fiscal year, boosting predictability. Doximity's client portal helps pharma clients track real-time ROI and discover upsell opportunities more efficiently, contributing to its 119% net revenue retention and 20% full-year growth. While advertising remains a core business, management is actively shifting focus to clinical utility and platform value. Point-of-care and formulary tools, still in early adoption, are expected to become nine-figure revenue drivers. However, this pivot is not without risks. Enterprise solutions involve longer sales cycles, more complex implementations and a different go-to-market approach. Yet, Doximity appears committed, upskilling its teams and retooling processes to support the transition. With high engagement, expanding AI capabilities, and enterprise offerings gaining momentum, Doximity's evolution looks more of a foundational shift than a tactical diversification. As healthcare continues to digitize, the company is increasingly positioning itself not just as a physician network, but as an essential clinical infrastructure. HealthStream HSTM is expanding its enterprise portfolio by deepening integration across its SaaS-based workforce applications. In first-quarter 2025, the company closed a $14 million, five-year deal with a large health system, one of the biggest in its history, combining its learning, scheduling and credentialing suites. HealthStream's emphasis is on mandatory, high-value functions such as workforce credentialing and competency development. Its hStream platform is evolving into a connective enterprise layer, enhancing interoperability across modules and delivering measurable ROI through reduced onboarding time and workforce optimization. Despite facing delays in some mid-sized deals, the company is confident in the long-term revenue visibility provided by multi-year enterprise contracts. CredentialStream and ShiftWizard, its core enterprise products, grew 25% and 19% year over year respectively, highlighting sustained demand amid macro pressure. Amwell AMWL is positioning its Converge platform as a unified, enterprise-grade solution for virtual care. In first-quarter 2025, it achieved live deployment across five regions of the U.S. Military Health System, especially for automated and behavioral health programs. Software revenues now represent nearly half of total revenues, growing 30% year over year. Amwell is shifting from episodic telehealth toward platform-based care delivery, emphasizing scalability, AI-driven automation and data analytics. The company also integrates third-party care programs, enhancing stickiness and client ROI. Despite ongoing losses, Amwell is committed to achieving positive cash flow by 2026 through subscription-based enterprise contracts and cost realignment. Shares of Doximity have gained 12.7% year to date compared with the industry's growth of 20%. Image Source: Zacks Investment Research DOCS' forward 12-month P/S of 17.8X is higher than the industry's average of 6X. The figure is also higher than its five-year median of 13.5X. DOCS carries a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for DOCS' fiscal 2026 earnings per share suggests a 2.8% improvement from fiscal 2025. Image Source: Zacks Investment Research Doximity stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthStream, Inc. (HSTM) : Free Stock Analysis Report American Well Corporation (AMWL) : Free Stock Analysis Report Doximity, Inc. (DOCS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
DOCS Q1 Earnings Call: Revenue Miss Offset by Growth in AI Tools and Client Portal Adoption
Healthcare professional network Doximity (NYSE:DOCS) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 17.1% year on year to $138.3 million. Its non-GAAP EPS of $0.38 per share was 39.3% above analysts' consensus estimates. Is now the time to buy DOCS? Find out in our full research report (it's free). Revenue: $138.3 million (17.1% year-on-year growth) Adjusted EPS: $0.38 vs analyst estimates of $0.27 (39.3% beat) Adjusted Operating Income: $67.97 million vs analyst estimates of $63.08 million (49.1% margin, 7.8% beat) Revenue Guidance for Q2 CY2025 is $139.5 million at the midpoint, below analyst estimates of $142.9 million EBITDA guidance for the upcoming financial year 2026 is $339 million at the midpoint, below analyst estimates of $349.1 million Operating Margin: 35.2%, in line with the same quarter last year Billings: $183.6 million at quarter end, up 18.6% year on year Market Capitalization: $10.05 billion Doximity's first quarter results were shaped by rising adoption of its workflow tools and continued engagement through its newsfeed platform, which management described as hitting fresh highs in active users. CEO Jeff Tangney credited the company's growth to 'AI tools [that] grew the fastest again last quarter, up more than 5x year-on-year,' and highlighted the company's specialty-specific artificial intelligence offerings as a differentiator in the physician community. Additionally, CFO Anna Bryson pointed to the impact of multi-module integrated offerings, which allowed for larger deal sizes and more efficient program launches, particularly in January. These operational shifts, coupled with high customer retention rates among Doximity's largest clients, supported the company's year-on-year revenue growth and sustained profitability. Looking ahead, Doximity's guidance reflects a cautious approach, with management citing macroeconomic and policy uncertainties as factors influencing client budget growth assumptions. Anna Bryson stated, 'the biggest factor here as we look ahead over the next 12 months will be what our clients' budgets look like,' and noted that upsell variability remains a consideration. The company expects its pharma business to remain the fastest-growing segment, driven by integrated offerings and AI-powered client solutions, but acknowledges tougher comparisons due to the pull-forward of revenue from earlier program launches in the prior year. Investments in AI and the expansion of the client portal are expected to enhance operational efficiency and drive long-term growth, though management emphasized prudence in its outlook. Management attributed quarterly performance to rapid growth in AI-enabled workflow tools, strong engagement with core newsfeed products, and expanded adoption of integrated offerings among pharmaceutical clients. AI tool adoption accelerates: Doximity's specialty-specific AI tools, particularly those allowing secure document uploads and analysis, saw usage increase more than fivefold year-on-year. Management believes these tools are helping reduce physician burnout and information overload, and expects further traction as features mature. Client portal drives ROI focus: The rollout of Doximity's client portal enabled pharmaceutical clients to track program effectiveness and return on investment in real time. This transparency is fueling greater interest in AI-powered automation of marketing programs, with clients granting Doximity more latitude to optimize content delivery. Integrated offerings shift revenue timing: The transition to multi-module integrated offerings allowed many clients to launch annual programs earlier, pulling forward revenue and creating a tougher year-over-year comparison for the upcoming quarters. Management expects this new launch pattern to support more predictable and stable revenue cycles in the future. Newsfeed engagement at record highs: Unique users and article engagement on the newsfeed platform reached all-time highs, with articles read or tapped up over 30% compared to last year. This trend was attributed to the platform's ability to deliver relevant clinical news and foster user loyalty. Point-of-care and workflow module expansion: Doximity's point-of-care and formulary modules continued to grow, with management noting these channels remain underpenetrated in the client base. The company sees significant room for future expansion as these modules prove their return on investment. Doximity's forward outlook is shaped by integrated program adoption, cautious client budget assumptions, and ongoing investments in AI and workflow tools. Integrated programs to stabilize revenue: Management expects that the continued rollout of multi-module integrated offerings will lead to steadier and more predictable revenue patterns, as more clients transition to January program launches and year-round campaigns. This shift is seen as a long-term positive for revenue visibility but creates tougher comparisons for the upcoming year due to prior pull-forward. AI investments to enhance efficiency: Increased spending on artificial intelligence is expected to drive both operational efficiency and improved client outcomes. Management noted early benefits from AI in reducing manual workload and scaling business without significant headcount increases, but cautioned that the payback period for new investments remains uncertain. Macro and budget variability as headwinds: The company is factoring in the potential for slower client budget growth amid ongoing policy and economic uncertainty. Management considers upsell variability and cautious client spending as key risks, with guidance assuming growth at the lower end of the historical market range for pharma digital programs. In the coming quarters, the StockStory team will focus on (1) the rate of adoption and upsell activity in integrated multi-module programs, (2) continued expansion and monetization of AI-powered workflow tools among physicians, and (3) the stability of client budgets amid macro policy uncertainty. Progress in client portal capabilities and point-of-care module penetration will also be important indicators of execution. Doximity currently trades at a forward price-to-sales ratio of 17.4×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
