Doximity's Business Overview - Doximity is a leading digital platform for doctors, boasting a network that includes over 80% of all U S physicians[6] - The platform offers networking, news, scheduling, eSignatures, collaboration, and communication tools tailored for healthcare professionals[13, 15] - Doximity aims to bring technology to medicine, drawing inspiration from enterprise tech solutions[12] Financial Performance and Metrics - Doximity achieved a net revenue retention rate of 119%[6] - The company's subscription revenue grew by 21%[6] - Doximity's adjusted EBITDA margin stands at 55%[6] - The number of customers with over $500,000 in revenue increased by 17% year-over-year[57] Market Opportunity and Solutions - Doximity addresses inefficiencies in healthcare, where 70% of U S healthcare communication is still sent via fax[11] and 75% of physicians attribute burnout to electronic health record (EHR) inefficiencies[9] - The company's marketing solutions drive the largest revenue, with health systems achieving a 17:1 ROI and pharmaceutical companies seeing over 11:1 ROI[32, 34]

Group 1 - Doximity (NYSE: DOCS) has moderate growth rates, with guidance indicating barely above double-digit growth [1] - The company presents strong investment potential, being part of a portfolio of undervalued stocks with rapid growth potential driven by quality management [1] - The marketplace emphasizes the importance of selecting attractive investments and highlights the work done in identifying the best stocks [2] Group 2 - The investment approach focuses on delivering strong gains and emphasizes deep value returns, indicating a commitment to high-quality stock picks [3] - The marketplace is experiencing rapid growth, suggesting increasing interest and engagement from members [3] - Member reviews indicate satisfaction with the actionable and insightful stock picks provided [3]

Company Performance - Doximity (DOCS) closed at $61.09, with a +1.13% change from the previous day, outperforming the S&P 500's gain of 0.52% [1] - The stock has increased by 16.31% over the past month, significantly surpassing the Medical sector's gain of 3.5% and the S&P 500's gain of 5.95% [1] Upcoming Earnings Report - Doximity is expected to report an EPS of $0.31, reflecting a 10.71% increase from the same quarter last year [2] - Revenue is forecasted at $139.67 million, indicating a 10.26% rise compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $1.46 per share, with a revenue estimate of $625.72 million, showing increases of +2.82% and +9.7% respectively from the previous year [3] Analyst Estimates and Confidence - Recent changes in analyst estimates for Doximity are important as they reflect near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3][4] Zacks Rank and Performance - Doximity currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has increased by 0.5% in the past 30 days [5] - The Zacks Rank system has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] Valuation Metrics - Doximity has a Forward P/E ratio of 41.41, which is a premium compared to the industry average Forward P/E of 32.04 [6] - The company has a PEG ratio of 4.49, higher than the industry average PEG ratio of 2.75 [7] Industry Ranking - The Medical Info Systems industry, to which Doximity belongs, ranks in the top 31% of all industries, with a current Zacks Industry Rank of 74 [7]

Core Insights - Doximity (DOCS) is evolving from a physician-focused social network to a comprehensive healthcare technology platform, emphasizing enterprise offerings such as workflow tools and AI solutions as key growth drivers [1][5] Company Developments - In Q4 FY2025, Doximity reported significant traction in workflow tools, including telehealth and AI documentation, reaching over 620,000 unique prescribers, with AI usage increasing more than fivefold year-over-year [2][9] - The company is positioning its enterprise tools as a "second act," moving away from its original focus on pharmaceutical marketing [2][5] - Doximity's enterprise offerings are expected to enhance revenue predictability, with integrated multi-module launches occurring earlier in the fiscal year [3][4] Financial Performance - Doximity achieved a net revenue retention rate of 119% and a full-year growth rate of 20%, driven by its client portal that helps pharma clients track ROI and identify upsell opportunities [3][9] - The company's stock has gained 12.7% year-to-date, compared to the industry growth of 20% [8] Market Positioning - While advertising remains a core business, Doximity is shifting its focus towards clinical utility and platform value, with point-of-care tools expected to become significant revenue contributors [4][5] - The transition to enterprise solutions involves longer sales cycles and more complex implementations, but Doximity is committed to retraining its teams to support this shift [4][9] Valuation Metrics - Doximity's forward 12-month price-to-sales (P/S) ratio is 17.8X, significantly higher than the industry average of 6X and its five-year median of 13.5X [11] - The Zacks Consensus Estimate for Doximity's fiscal 2026 earnings per share indicates a 2.8% improvement from fiscal 2025 [13]

Core Insights - Doximity (DOCS) is leveraging artificial intelligence to drive growth following a strong fiscal 2025, introducing tools like Doximity GPT to enhance clinician workflows and achieve a 20% revenue increase [1][10] - The company anticipates growth at approximately twice the market rate, positioning itself favorably in the high-margin pharma marketing sector [1][10] Group 1: AI Tools and Revenue Impact - Doximity GPT and other AI tools have seen strong adoption, but management has not quantified their revenue impact, indicating that these initiatives are still in the early stages of development [2][10] - The reliance on pharma marketing dollars remains significant, with potential for AI tools to enhance user engagement and open new monetization avenues in premium subscriptions and value-added services [3][4] Group 2: Long-term Growth Potential - While immediate revenue boosts from AI are unlikely, the technology is expected to support a more sustainable and diversified growth trajectory over time [4][5] - With over 80% of U.S. physicians on the platform, Doximity is well-positioned to capitalize on operational execution and increased adoption of AI tools [5] Group 3: Competitive Landscape - Other companies, such as Certara and GE HealthCare, are also developing AI tools to remain competitive, with Certara reporting an 18% year-over-year increase in software revenues due to AI uptake [7][8] - GE HealthCare has invested significantly in AI across its product offerings, showcasing new AI-enabled diagnostics and planning to launch nearly 200 AI/ML-enabled devices in the next three years [8] Group 4: Financial Performance and Valuation - Doximity's shares have increased by 6.9% year-to-date, underperforming the industry average growth of 28% [9] - The forward 12-month price-to-sales ratio for Doximity is 16.9X, significantly higher than the industry average of 6X and its five-year median of 13.5X, indicating a premium valuation [12]

Core Insights - Doximity (DOCS) and iRhythm Technologies (IRTC) are prominent players in AI-powered healthcare, with Doximity focusing on clinician engagement and workflow, while iRhythm specializes in AI-driven cardiac monitoring [2][4] - Doximity reported fiscal 2025 revenues of $570.4 million, a 20% increase year-over-year, and a 48% rise in operating cash flow [2] - iRhythm Technologies achieved full-year 2024 revenues of $591.8 million, reflecting a 20.1% year-over-year growth [3] Company Overview - Doximity serves over 80% of U.S. physicians with a platform that includes telehealth and workflow tools [5] - iRhythm Technologies focuses on AI-driven cardiac monitoring through its Zio platform, which provides clinically validated diagnostics [5] Financial Performance - Doximity's fourth quarter of fiscal 2025 saw revenues of $138.3 million and net income of $62.5 million, with a 56% increase in free cash flow [7] - iRhythm's first-quarter 2025 revenues reached $158.7 million, a 20.3% year-over-year increase, despite a net loss of $30.7 million [10] Stock Performance - Year-to-date, Doximity's share price increased by 6.9%, while iRhythm's surged by 61.4% [6][9] - Doximity's stock performance is impacted by risks related to drug-pricing reforms and changes in pharmaceutical advertising budgets [6] AI Integration - Doximity has integrated AI into clinical workflows, notably with Doximity GPT, which automates documentation [11] - iRhythm employs AI for diagnostics through its Zio platform, supported by the ZEUS AI system for interpreting cardiac data [13] Growth Outlook - Doximity anticipates fiscal 2026 revenues between $619 million and $631 million, with adjusted EBITDA of $333-$345 million [14] - iRhythm raised its revenue outlook for the full year to $690-$700 million, with EBITDA margins projected at 7.5-8.5% [14] Investment Appeal - Doximity is viewed as a stable investment with profitability and a large user base, appealing to risk-averse investors [19] - iRhythm presents a higher-risk, higher-reward opportunity driven by innovative diagnostics and expanding clinical applications [19]

Doximity (NYSE: DOCS ) provides a digital platform for U.S. medical professionals with 2 million members, covering 80% of U.S. physicians. Its platform enables healthcare professionals to access the latest medical information, recruit staff, and streamline clinical workflows. I view Doximity as the "LinkedIn" for healthcare professionals, and I am initiatingAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such posi ...

Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN) or Doximity (DOCS) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimat ...

Core Insights - Doximity, Inc. has developed a client engagement and retention strategy centered on integrated, physician-first tools across its Marketing, Hiring, and Workflow Solutions, resulting in over 620,000 unique providers using its clinical tools in Q4 of fiscal 2025 [1] Group 1: Marketing Solutions - Doximity's Marketing Solutions utilize AI and machine learning to deliver personalized campaigns, enabling pharmaceutical and health system clients to effectively reach specific clinician segments with relevant content [2] - This targeted approach has led to measurable engagement, prompting clients to broaden their usage across various brands or service lines [2] Group 2: Customer Retention Strategies - The company invests in a robust customer success team that collaborates with clients to optimize campaigns and provide ongoing analytics, which has fostered upsell opportunities and long-term relationships [3] - Clients benefit from a self-serve portal that offers real-time insights, enhancing the overall customer experience [3] Group 3: Workflow Solutions - Doximity's Workflow Solutions, such as Dialer Enterprise and AMiON, have gained significant traction and are now integrated into hospital operations, reducing the likelihood of clients transitioning away from the platform [4] - Recent innovations like Doximity GPT, an AI-powered writing assistant, further alleviate administrative burdens for clients [4] Group 4: Competitive Landscape - GoodRx Holdings, Inc. has launched Community Link to enhance pharmacy engagement through cost-plus pricing, while also introducing a new erectile dysfunction subscription service to streamline consumer access [5] - Veeva Systems Inc. is enhancing client engagement through its Vault CRM Suite, which integrates medical, sales, and service teams, and has reported momentum in products that provide real-time insights [6] Group 5: Financial Performance - Doximity's shares have increased by 9.6% year-to-date, contrasting with the industry's decline of 0.9% [7] - The Zacks Consensus Estimate indicates a 3.5% improvement in Doximity's earnings per share for fiscal 2026 compared to fiscal 2025 [9] - The company's forward 12-month P/E ratio stands at 39.4X, higher than the industry average of 14.6X but lower than its three-year median of 48.9X [12]

Core Insights - Doximity's shares have decreased by approximately 4.4% over the past month despite solid fiscal Q4 2025 results, which included revenues of $138.3 million and a 50% adjusted EBITDA margin [1][3] - For fiscal 2025, total revenues reached $570.4 million, reflecting a 20% year-over-year increase, with adjusted EBITDA rising 36% to $313.8 million and margin expanding to 55% [1][4] Financial Performance - In Q4 2025, Doximity's revenues increased by 17% to $138.3 million, with an adjusted EBITDA margin of 50% [8] - The company reported a free cash flow of $97 million in Q4, contributing to a total cash position of $916 million by the end of the quarter [3][4] - Doximity raised its fiscal 2025 revenue guidance by $55-65 million to a range of $619-$631 million, indicating a 10% growth at the midpoint [5] Client Engagement and Retention - Net revenue retention reached 119% on a trailing 12-month basis, with the top 20 clients achieving a retention rate of 123% [9] - The number of customers generating over $500,000 in annual subscription revenues grew by 17% to 116, accounting for 84% of total revenues [9] Growth Drivers - Continued revenue and margin expansion were evident, with Q4 2025 top line exceeding guidance by 4% and adjusted EBITDA surpassing guidance by 10% [4] - Doximity's integrated multi-module programs and AI tools have accelerated client upsells and engagement [8] Challenges and Competition - The company faces macro and policy uncertainties, with management conservatively projecting a 5-7% growth in the pharmaceutical HCP digital market for fiscal 2026 [13] - Doximity competes with established players like Veeva Systems, Teladoc Health, and IQVIA Holdings for clinician engagement and marketing budgets [14][15] - Monetization of AI products remains low, with management acknowledging uncertainties regarding payback periods and long-term margin contributions [16] Valuation and Investment Outlook - Doximity's shares are considered overvalued, trading at a forward P/E of 36.05X compared to the sector's 14.26X [10] - The company demonstrates a profitable, high-growth business model, but challenges include macro uncertainties and competition for physician attention [20]