Doximity (DOCS) FY 2025 Annual General Meeting August 28, 2025 12:00 PM ET Company ParticipantsJennifer Chaloemtiarana - General CounselOperatorWelcome to Doximity's Annual Meeting of Stockholders. I would like to introduce Jennifer Chillum Tierraana. Please go ahead.Jennifer ChaloemtiaranaThank you, and good morning. It is now 9AM Pacific Time, and I call this meeting to order.Welcome to the Annual Meeting of Stockholders of Doximity Inc. Am Jennifer Chulam Tirana, General Counsel and Corporate Secretary, ...

Financial Data and Key Metrics Changes - The preliminary results of the annual meeting indicate that both Jeff Tangney and Kara Wampler have been elected as directors until the 2028 Annual Meeting [8] - Deloitte's appointment as the independent auditor for fiscal year 2026 has been ratified [8] - The nonbinding advisory vote on the compensation of named executive officers for the fiscal year ended March 31, 2025, has been approved [8] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were provided in the meeting [9] Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [9] Company Strategy and Development Direction and Industry Competition - The company has proposed to elect two class one directors and ratify the independent auditor, indicating a focus on governance and oversight [6] - The approval of executive compensation suggests a strategy to align management incentives with shareholder interests [7] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [9] Other Important Information - The meeting was conducted virtually, and voting was completed in accordance with Doximity's Bylaws and Delaware law [2][3] - The meeting was attended by the CEO, CFO, Board of Directors, and representatives from Deloitte, indicating a strong governance structure [2] Q&A Session All Questions and Answers - No Q&A session was recorded or reported in the meeting [9]

Financial Data and Key Metrics Changes - The preliminary results of the annual meeting indicate that both Jeff Tangney and Kara Wampler have been elected as directors until the 2028 Annual Meeting [8] - Deloitte's appointment as the independent auditor for fiscal year 2026 has been ratified [8] - The nonbinding advisory vote on named executive officers' compensation for the fiscal year ended March 31, 2025, has been approved [8] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were discussed in the meeting [9] Market Data and Key Metrics Changes - No specific market data or metrics were provided during the meeting [9] Company Strategy and Development Direction and Industry Competition - The company has recommended the passage of all proposals presented at the meeting, indicating a unified strategy among the Board of Directors [7] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [9] Other Important Information - The meeting was conducted virtually, and voting was completed in accordance with Doximity's Bylaws and Delaware law [2][3] - The meeting was attended by the CEO, CFO, Board of Directors, and representatives from Deloitte, indicating a strong governance structure [2] Q&A Session All Questions and Answers - No Q&A session was recorded or reported in the meeting [9]

Core Insights - Doximity, Inc. (DOCS) reported adjusted earnings per share (EPS) of 36 cents for Q1 fiscal 2026, marking a 28.6% increase year over year and exceeding the Zacks Consensus Estimate by 16.1% [1][9] - The company's revenues reached $145.9 million in the same quarter, reflecting a 15.2% year-over-year growth and surpassing the Zacks Consensus Estimate by 4.5% [2][9] Revenue Breakdown - Doximity's revenue sources include Subscription and Other, with Subscription revenues totaling $137.9 million, up 14.9% year over year, driven by new and expanding existing customers [3][4] - Other revenues amounted to $8 million, representing a 19.8% increase year over year [4] Margin Analysis - Gross profit for the quarter increased by 15% year over year to $130.1 million, although gross margin contracted by 13 basis points to 89.2% [5] - Operating profit was reported at $54.5 million, an 18.4% increase from the prior year, with the operating margin expanding by 101 basis points to 37.4% [6] Financial Position - At the end of Q1 fiscal 2026, Doximity had cash and cash equivalents of $137.3 million, down from $209.6 million at the end of fiscal 2025 [7] - Net cash provided by operating activities was $62.1 million, compared to $41.2 million a year ago [7] Guidance and Outlook - Doximity raised its full-year revenue outlook to between $628 million and $636 million, up from the previous range of $619 million to $631 million [9][10] - For Q2 fiscal 2026, the company expects revenues between $157 million and $158 million, exceeding the Zacks Consensus Estimate of $150.4 million [10] Performance Highlights - The company reported double-digit growth in unique active users across various metrics, and a record number of unique active prescribers utilized Doximity's workflow tools [12] - The recent launch of Doximity AI scribe is seen as a promising development for the company's future [12]

Doximity Inc DOCS reported better-than-expected earnings for the first quarter on Thursday.The company posted quarterly earnings of 36 cents per share which beat the analyst consensus estimate of 30 cents per share. The company reported quarterly sales of $145.913 million which beat the analyst consensus estimate of $139.705 million.Doximity raised its FY2026 sales guidance from $619.000 million-$631.000 million to $628.000 million-$636.000 million.“We began our year with strong profit growth and record eng ...

Group 1 - Doximity reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.28 per share a year ago, resulting in an earnings surprise of +16.13% [1] - The company achieved revenues of $145.91 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.47%, and up from $126.68 million year-over-year [2] - Doximity has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 8.9% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The future performance of Doximity's stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $150.43 million, and for the current fiscal year, it is $1.46 on revenues of $625.72 million [7] Group 3 - The Medical Info Systems industry, to which Doximity belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Doximity's stock performance [5][6]

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 FY2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [7] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [7] - Free cash flow increased by 52% year-on-year, reaching $60.1 million [22] - Non-GAAP gross margin for Q1 was 91%, down from 92% in the prior year [21] Business Line Data and Key Metrics Changes - Unique active users across all metrics (quarterly, monthly, daily) reached record highs, with double-digit percentage growth year-on-year [9] - The number of unique active prescribers using workflow tools reached 630,000, marking significant engagement [9] - The AI tools experienced over 5x year-on-year growth [9] Market Data and Key Metrics Changes - Doximity's net revenue retention rate was 118% on a trailing twelve-month basis, with the top 20 customers showing a higher rate of 119% [20] - The company ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue, a 17% increase from the previous year [21] Company Strategy and Development Direction - Doximity is focusing on AI integration, with the launch of the Doximity AI Scribe and the acquisition of Pathway, aiming to enhance physician productivity [19][23] - The company plans to integrate Scribe into telehealth tools, creating a seamless experience for physicians [13] - Doximity aims to build a comprehensive AI suite that addresses clinical questions and enhances workflow efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainty, noting no slowdown in customer budgets [27] - The outlook for FY2026 includes revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [25] - Management highlighted the importance of AI investments for long-term growth and productivity improvements [56] Other Important Information - The Pathway acquisition was completed for $26 million in cash and up to $37 million in equity grants, with no expected revenue contribution this year [24] - The company repurchased $122.3 million worth of shares during the first quarter [23] Q&A Session Summary Question: How can you frame the opportunity for investors regarding Scribe, Pathways, and Doximity GPT? - Management sees these AI tools as a potential third act, enhancing physician engagement and addressing clinical questions in real-time [31] Question: Can you provide insights on customer budgets and the second half guidance? - Management noted strong Q1 performance but cautioned against extrapolating this into the second half due to policy uncertainties [36] Question: What are the qualitative differences in upsell cycles this year? - Management indicated broad-based strength across all customer segments, with significant growth in SMB customers [40] Question: How do you view the drivers of continued provider use of products? - Management highlighted the stickiness of workflow tools and the importance of AI in enhancing user engagement [48] Question: Will the new AI offerings become standalone revenue generators? - Management anticipates that AI products like Scribe could evolve into enterprise revenue streams similar to the Doximity Dialer [59] Question: What is the current state of the Provider Solutions business? - Management reported strong traction in the health system business, particularly in enterprise offerings [99] Question: How is the news feed performing and what developments are there? - Management noted record high engagement in the news feed, with video content becoming increasingly important [109]

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [5][18] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [5][6] - Free cash flow grew by 52% year-on-year, reaching $60.1 million [21] - Non-GAAP gross margin was 91%, slightly down from 92% in the prior year [20] Business Line Data and Key Metrics Changes - Unique active users across all engagement metrics hit record highs, with a significant increase in the use of workflow tools [7] - The Doximity AI Scribe launched, with over 10,000 healthcare professionals participating in beta testing, indicating strong initial adoption [8][9] - The Pathway acquisition is expected to enhance clinical reference tools, although no immediate revenue contribution is anticipated this fiscal year [22] Market Data and Key Metrics Changes - The company reported a net revenue retention rate of 118% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 119% [18] - The agency partners contributed to over 100% year-on-year bookings growth in the SMB customer segment [25] Company Strategy and Development Direction - Doximity is focusing on integrating AI tools into its offerings, with the Scribe and Pathway acquisition seen as pivotal for long-term growth [26][17] - The company aims to enhance physician productivity through its AI suite, which includes tools for note-taking and clinical question answering [17][26] - The strategy includes making clinical reference tools free to users, thereby increasing engagement and adoption [22][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainties, noting that client budgets remain robust [35][112] - The outlook for the full fiscal year is revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [24] - Management remains cautious about the second half of the year, taking a measured approach to unbooked revenue due to policy uncertainties [35][112] Other Important Information - The company ended the quarter with $841 million in cash and equivalents, and repurchased $122.3 million worth of shares [21][22] - The Pathway acquisition cost $26 million in cash and up to $37 million in equity grants, with minimal impact on expenses expected this fiscal year [22][23] Q&A Session Summary Question: How can investors frame the opportunity with Scribe and Pathway? - Management highlighted that AI tools could represent a significant growth opportunity, potentially as large as previous product launches [28][32] Question: What insights are there regarding customer budgets for the second half of the year? - Management noted that while Q1 was strong, it is the smallest bookings quarter, and they are taking a cautious approach due to policy uncertainties [33][35] Question: Can you elaborate on the upsell cycle and the role of the client portal? - Management indicated that all business segments are performing well, with the client portal providing valuable insights that have driven significant growth in SMB customers [40][42] Question: What are the drivers of increased utilization of Doximity's products? - Management pointed to strong growth in workflow tools and telehealth products, with AI enhancing the newsfeed's relevance and engagement [46][50] Question: How does the Pathway acquisition fit into Doximity's overall strategy? - Management confirmed that Pathway's integration is progressing well, with plans to offer its tools for free to enhance user engagement [82][84]

[Part I—Financial Information](index=6&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Doximity, Inc. presents its unaudited condensed consolidated financial statements for Q1 FY2026, including balance sheets, statements of operations, cash flows, and explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.20 billion** by June 30, 2025, from **$1.26 billion**, primarily due to reduced cash and stock repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $137,261 | $209,614 | | Marketable securities | $703,712 | $706,050 | | Total current assets | $1,034,231 | $1,088,620 | | Total assets | $1,204,447 | $1,264,309 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $159,912 | $156,257 | | Total liabilities | $178,852 | $181,684 | | Total stockholders' equity | $1,025,595 | $1,082,625 | | Total liabilities and stockholders' equity | $1,204,447 | $1,264,309 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 revenue increased **15.2%** to **$145.9 million**, with net income rising **28.9%** to **$53.3 million** and diluted EPS at **$0.27** Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $145,913 | $126,676 | +15.2% | | Gross Profit | $130,120 | $113,126 | +15.0% | | Income from Operations | $54,517 | $46,053 | +18.4% | | Net Income | $53,320 | $41,377 | +28.9% | | Diluted EPS | $0.27 | $0.21 | +28.6% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow rose to **$62.1 million**, while financing activities used **$137.1 million** due to **$122.4 million** in stock repurchases, leading to a **$72.4 million** net cash decrease Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,101 | $41,243 | | Net cash provided by investing activities | $2,679 | $29,941 | | Net cash used in financing activities | $(137,133) | $(56,527) | | Net (decrease) increase in cash | $(72,353) | $14,657 | - The significant increase in cash used for financing activities was driven by a substantial rise in common stock repurchases, which amounted to **$122.4 million** in Q1 FY2026 compared to **$51.2 million** in Q1 FY2025[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, investments, and legal contingencies, highlighting Marketing, Hiring, and Workflow Solutions and a securities lawsuit - The company's primary customers are pharmaceutical companies and health systems that utilize its digital Marketing, Hiring, and Workflow Solutions to connect with healthcare professionals[26](index=26&type=chunk) Revenue Disaggregation (in thousands) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Subscription | $137,876 | $119,968 | | Other | $8,037 | $6,708 | | **Total revenue** | **$145,913** | **$126,676** | - The company is involved in a securities class action lawsuit and several shareholder derivative lawsuits filed in April 2024, related to disclosures of user count and engagement rates. The company intends to defend vigorously against these actions[108](index=108&type=chunk) - In July 2025, subsequent to the quarter's end, Doximity acquired Pathway Medical Inc., an AI-based medical knowledge platform, for **$26 million** in cash and issued approximately **$37 million** in RSUs to certain individuals joining the company[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial performance, highlighting **15%** revenue growth to **$145.9 million**, key metrics, non-GAAP measures, and liquidity, including stock repurchases - Doximity is the leading digital platform for U.S. medical professionals, with over **80%** of U.S. physicians as members[126](index=126&type=chunk) Key Financial Highlights (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $145.9 million | $126.7 million | 15% | | Net Income | $53.3 million | $41.4 million | 29% | | Adjusted EBITDA | $79.8 million | $65.9 million | 21% | [Key Business and Financial Metrics](index=33&type=section&id=Key%20Business%20and%20Financial%20Metrics) Key metrics show growth, with customers exceeding **$500k TTM revenue** increasing to **120** and net revenue retention improving to **118%** Key Metrics Comparison | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customers with >$500k TTM Revenue | 120 | 103 | | Net Revenue Retention Rate | 118% | 114% | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 FY2026 revenue grew **15%** to **$145.9 million**, primarily from subscription revenue, while operating expenses increased due to higher stock-based compensation and personnel costs - The **$17.9 million** increase in subscription revenue was driven by **$4.8 million** from new customers and **$13.1 million** from the expansion of existing customers[160](index=160&type=chunk) - Research and development expense increased by **19%** YoY, driven by higher stock-based compensation, personnel costs, and contractor costs[162](index=162&type=chunk) - General and administrative expense rose **34%** YoY, primarily due to increased stock-based compensation and higher legal and accounting fees[166](index=166&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Doximity held **$841.0 million** in liquid assets and repurchased **$198.3 million** in stock under a **$500 million** program, with **$301.7 million** remaining - On May 1, 2024, the board authorized a new stock repurchase program of up to **$500 million** with no expiration date[171](index=171&type=chunk) - As of June 30, 2025, the company had repurchased shares for **$198.3 million** under the new program, with **$301.7 million** remaining authorized for repurchase[171](index=171&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,101 | $41,243 | | Net cash provided by investing activities | $2,679 | $29,941 | | Net cash used in financing activities | $(137,133) | $(56,527) | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on its **$841.0 million** investment portfolio, with a **100 basis point** rate increase potentially reducing market value by **$5.0 million** - The company's primary market risk is interest rate risk affecting its **$841.0 million** portfolio of cash, cash equivalents, and marketable securities[188](index=188&type=chunk)[169](index=169&type=chunk) - A hypothetical **100 basis point** increase in interest rates would result in a **$5.0 million** decrease in the market value of the company's investment portfolio as of June 30, 2025[189](index=189&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the quarter, the company's disclosure controls and procedures were effective at the reasonable assurance level[192](index=192&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[193](index=193&type=chunk) [Part II—Other Information](index=46&type=section&id=Part%20II%E2%80%94Other%20Information) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a securities class action and five shareholder derivative lawsuits from April 2024 regarding user count and engagement rate disclosures - The company is facing a securities class action lawsuit and five shareholder derivative lawsuits filed in April 2024 concerning disclosures about user count and engagement rates[195](index=195&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - There have been no material changes to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,266,003** shares under its program during Q1 FY2026 and issued **28,667** Class A common shares from a warrant exercise Share Repurchases (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,073,195 | $53.24 | | May 2025 | 701,871 | $53.66 | | June 2025 | 490,937 | $56.08 | | **Total** | **2,266,003** | **N/A** | - As of June 30, 2025, approximately **$301.7 million** remained available for repurchase under the authorized program[199](index=199&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) CFO Anna Bryson terminated a Rule 10b5-1 trading plan and adopted a new one on May 27, 2025, for the sale of **160,000** shares - CFO Anna Bryson terminated a Rule 10b5-1 trading plan from November 2024 and adopted a new plan on May 27, 2025, for the sale of **160,000** shares over the next year[204](index=204&type=chunk)

Doximity Announces Fiscal 2026 First Quarter Financial Results Total revenues of $145.9 million, up 15% year-over-year Operating cash flow of $62.1 million, up 51% year-over-year Free cash flow of $60.1 million, up 52% year-over-year Exhibit 99.1 SAN FRANCISCO, Calif., August 7, 2025 -- 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 ...