INVESTOR PRESENTATION Winter 2025 LEGAL DISCLAIMER This presentation and associated commentary may contain forward-looking statements, including statements regarding expectations of future results of operations or financial performance of Doximity, market size and growth opportunities, the calculation of certain of our key financial and operating metrics, capital expenditures, plans for future operations, competitive position, technological capabilities, and strategic relationships, general business conditi ...

Company Performance - Doximity reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and up from $0.29 per share a year ago, representing an earnings surprise of 36.36% [1] - The company posted revenues of $168.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.60%, compared to $135.28 million in the same quarter last year [2] - Doximity has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - Doximity shares have increased approximately 8.9% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $123.88 million, and for the current fiscal year, it is $1.14 on revenues of $539.15 million [7] - The estimate revisions trend for Doximity is mixed, and future earnings expectations will be influenced by management's commentary during the earnings call [3][4] Industry Context - The Medical Services industry, to which Doximity belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, NeueHealth, is expected to report a quarterly loss of $2.29 per share, indicating challenges within the sector [9]

Doximity at the New York Stock Exchange for their IPO, June 24, 2021.Shares of Doximity popped 21% on Thursday after the company reported third-quarter fiscal 2025 results that beat analysts' expectations for revenue and offered rosy guidance.Here's how the company did:Earnings per share: 37 cents. That may not compare with the 34 cents expected by LSEG.Revenue: $168.6 million vs. $152.8 million expected by LSEG.Doximity is a digital platform for medical professionals that helps clinicians stay current on m ...

Doximity exceeded expectations with strong revenue and net income growth, highlighting robust operational performance.Doximity (DOCS), a digital platform for U.S. medical professionals, released its fiscal third-quarter earnings on Feb. 6, 2025. The company reported impressive results, surpassing both analyst forecasts and its own guidance. It achieved a non-GAAP earnings per share (EPS) of $0.45, well above the estimate of $0.34. Revenue reached $168.6 million, compared to expectations of $152 million. Ove ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 500 3rd St. OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Suite 510 For the transition period from to ...

Doximity Fiscal 2025 Third Quarter Financial Results [Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) Doximity reported strong Q3 FY2025 financial results, including significant revenue and net income growth, and provided positive future guidance [Fiscal 2025 Third Quarter Financial Highlights](index=1&type=section&id=Fiscal%202025%20Third%20Quarter%20Financial%20Highlights) Doximity achieved significant Q3 FY2025 year-over-year growth in revenue, net income, Adjusted EBITDA, diluted EPS, and free cash flow | Financial Metric | Q3 FY2025 (in millions) | Q3 FY2024 (in millions) | % Change YoY | | :--- | :--- | :--- | :--- | | Revenue | $168.6M | $135.3M | 25% | | Net Income | $75.2M | $48.0M | 57% | | Adjusted EBITDA | $102.0M | $73.3M | 39% | | Diluted Net Income per Share | $0.37 | $0.24 | 54% | | Operating Cash Flow | $65.2M | $50.1M | 30% | | Free Cash Flow | $63.4M | $48.7M | 30% | - The company achieved record engagement in Q3, with over **610,000 unique providers** using its clinical workflow tools[2](index=2&type=chunk) - AI tools experienced the fastest growth, increasing **60% over the prior quarter**, while the newsfeed surpassed **one million unique providers**[2](index=2&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) Doximity provided Q4 FY2025 and updated full fiscal year 2025 revenue and Adjusted EBITDA guidance | Guidance for Q4 FY2025 | Range (in millions) | | :--- | :--- | | Revenue | $132.5M - $133.5M | | Adjusted EBITDA | $62.5M - $63.5M | | Updated Guidance for Full Year FY2025 | Range (in millions) | | :--- | :--- | | Revenue | $564.6M - $565.6M | | Adjusted EBITDA | $306.6M - $307.6M | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements reveal a robust financial position with increased assets, strong revenue and net income growth, and robust operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Doximity's balance sheet as of December 31, 2024, shows increased total assets, decreased liabilities, and a substantial rise in stockholders' equity | Balance Sheet Item | Dec 31, 2024 (in thousands) | Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $165,270 | $96,785 | | Total current assets | $1,012,703 | $912,941 | | Total assets | $1,172,157 | $1,079,374 | | Total liabilities | $141,037 | $177,977 | | Total stockholders' equity | $1,031,120 | $901,397 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and nine months ended December 31, 2024, Doximity reported significant year-over-year increases in revenue and net income | Income Statement (Three Months Ended Dec 31) | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $168,603 | $135,284 | | Gross Profit | $154,422 | $123,094 | | Income from operations | $79,925 | $58,551 | | Net income | $75,196 | $47,956 | | Diluted EPS | $0.37 | $0.24 | | Income Statement (Nine Months Ended Dec 31) | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $432,111 | $357,365 | | Net income | $160,727 | $106,964 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2024, operating cash flow significantly increased, with financing activities primarily involving stock repurchases | Cash Flow (Nine Months Ended Dec 31) | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $174,778 | $120,152 | | Net cash provided by (used in) investing activities | $(4,825) | $107,356 | | Net cash used in financing activities | $(101,468) | $(262,446) | | Net increase (decrease) in cash | $68,485 | $(34,938) | [Non-GAAP Financial Measures & Key Metrics](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Metrics) Doximity uses non-GAAP financial measures and key business metrics to provide a comprehensive view of its operational performance [Explanation of Non-GAAP Measures](index=6&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Doximity defines its key non-GAAP measures, including Adjusted EBITDA and free cash flow, to clarify their calculation and purpose - Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, and amortization, and further adjusted for stock-based compensation expense, change in fair value of contingent earn-out consideration liability, restructuring and impairment charges, and other income, net[16](index=16&type=chunk) - Free cash flow is calculated as cash flow from operating activities less purchases of property and equipment and internal-use software development costs[16](index=16&type=chunk) [Key Business Metrics](index=6&type=section&id=Key%20Business%20Metrics) Doximity tracks net revenue retention rate and high-value customer count as key business metrics to evaluate growth and scale - Net revenue retention rate is calculated using trailing 12-month (TTM) subscription-based revenue from customers who also had revenue in the prior TTM period, reflecting renewals, expansion, contraction, and churn[17](index=17&type=chunk) - The number of customers with TTM subscription revenue exceeding **$500,000** is a key indicator of the scale of the business[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Q3 FY2025 reconciliation highlights Adjusted EBITDA and non-GAAP net income, with stock-based compensation as a primary adjustment | Reconciliation (Three Months Ended Dec 31, 2024) | Amount (in thousands) | | :--- | :--- | | **Net income (GAAP)** | **$75,196** | | Stock-based compensation | $19,368 | | Depreciation and amortization | $2,655 | | Provision for income taxes | $14,644 | | Other adjustments | $(9,825) | | **Adjusted EBITDA** | **$102,038** | | Reconciliation (Three Months Ended Dec 31, 2024) | Amount (in thousands) | | :--- | :--- | | **Net income (GAAP)** | **$75,196** | | Stock-based compensation | $19,368 | | Amortization of acquired intangibles | $1,061 | | Other adjustments & tax effect | $(4,219) | | **Non-GAAP net income** | **$91,406** | [Company Information](index=2&type=section&id=Company%20Information) Doximity, a leading digital platform for U.S. medical professionals, offers collaboration and practice management tools, with forward-looking statements subject to risks - Doximity's network includes more than **80% of U.S. physicians** across all specialties and practice areas[5](index=5&type=chunk) - The company's mission is to help doctors be more productive so they can provide better care for their patients by offering digital tools for collaboration, news, career management, and virtual visits[5](index=5&type=chunk) - The press release contains forward-looking statements that are subject to risks and uncertainties, including economic conditions, ability to retain members and customers, and security measures[6](index=6&type=chunk)

For Immediate ReleasesChicago, IL – January 23, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, Doximity (DOCS) , Omnicell (OMCL) , Embecta Corp. (EMBC) , Cencora, Inc. (COR) and the Global Telemedicine & Digital Health ETF (EDOC) .Here are highlights from Thursday’s Analyst Blog:4 MedTech Stocks Poised to Thrive ...

Investment Analysis - The analyst recommended a hold rating for Doximity (NYSE: DOCS) on 2nd October last year, as the valuation was believed to have already priced in near-term upside [1] - An ideal investment is considered to be one that operates in a sector projected to experience structural (organic) growth exceeding GDP growth over the next 5-10 years [1] - The investment should also profit from sustainable competitive advantages that translate into attractive unit economics [1] - The company should be managed by competent, ethical, and long-term thinkers [1] - The valuation of the investment should be fair [1]

Company Performance - Doximity's shares have increased by 19.98% over the past month, outperforming the Medical sector's decline of 3.8% and the S&P 500's gain of 0.34% during the same period [1] - The company is expected to report earnings of $0.33 per share, reflecting a year-over-year growth of 13.79%, with revenue anticipated at $152.44 million, up 12.69% from the prior-year quarter [7] - For the entire fiscal year, earnings are projected at $1.14 per share and revenue at $539.15 million, indicating increases of +20% and +13.4% respectively from the previous year [2] Valuation Metrics - Doximity currently has a Forward P/E ratio of 50.78, significantly higher than the industry average of 16.87 [3] - The company has a PEG ratio of 3.54, compared to the Medical Services industry's average PEG ratio of 1.48 [9] Industry Context - The Medical Services industry, which includes Doximity, holds a Zacks Industry Rank of 130, placing it in the bottom 49% of over 250 industries [4] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [10] Analyst Sentiment - Recent changes in analyst estimates for Doximity indicate evolving short-term business trends, with positive revisions reflecting analysts' confidence in the company's performance [11] - Doximity currently holds a Zacks Rank of 1 (Strong Buy), with no changes in the consensus EPS estimate over the past month [12]

Industry Overview - The healthcare sector is experiencing significant changes driven by rising patient volumes, higher occupancy rates, escalating medical costs, inflationary pressures, and the resumption of elective procedures, particularly among seniors [1][3] - Key trends such as the increasing use of artificial intelligence (AI), an aging population, a rise in chronic diseases, and advancements in personalized medicine are expected to continue into 2025, driving further transformation [1][7] Investment Opportunities - Stocks tied to the healthcare industry with strong growth prospects, such as McKesson Corporation (MCK), Doximity, Inc. (DOCS), and Veracyte, Inc. (VCYT), present compelling opportunities for investors as the sector evolves [2] - The Zacks Medical Sector reported a 2.8% decline year to date, contrasting with the S&P 500 Index's robust 27.7% growth, indicating potential for recovery and investment opportunities [3] Technological Advancements - AI adoption is helping manage cost growth and improve efficiency, with expanded use in diagnostic accuracy, patient monitoring, and administrative task automation expected in the coming year [6] - The healthcare sector is witnessing increased demand for medical services, leading to a rise in the demand for medical equipment, devices, healthcare-related technologies, medications, and testing volumes [7] Capacity Expansion and M&A Activity - Healthcare providers are investing in capacity expansion through new bed additions, acquisitions, and de novo projects to meet surging inpatient and outpatient demand [8] - The sector has seen heightened merger and acquisition activity as companies seek to consolidate resources and achieve operational synergies, setting the stage for long-term growth [8] Stock Performance and Projections - McKesson's current-year earnings estimate is pegged at $32.73 per share, indicating a 19.3% year-over-year growth, with three upward estimate revisions in the past 30 days [15] - Doximity's current-year earnings estimate is $1.14 per share, reflecting a 20% year-over-year jump, with two upward estimate revisions recently [17] - Veracyte's current-year earnings estimate is 38 cents per share, a significant improvement from the previous year's loss of $1.02, with two upward estimate revisions [20] Market Dynamics - Pharmaceutical and medical device companies are increasingly adopting direct-to-consumer (DTC) models, which may improve patient accessibility but could impact the relationship between patients and their regular providers [9] - The rising demand for psychiatric care has led to a proliferation of behavioral health urgent care clinics, with companies in this space under scrutiny for billing practices and treatment durations [10] Cost Management Strategies - Despite stabilizing inflation rates, medical costs remain a critical challenge, prompting industry players to focus on cost-management strategies, leveraging technologies like AI, telemedicine, and automation [11] - Personalized medicine and digital health solutions are expected to gain traction, offering opportunities for companies that innovate and invest in these areas [11] Policy Considerations - Potential policy changes under the new administration could influence healthcare sector profitability, with concerns about government spending cuts and expiring insurance subsidies creating uncertainty [12]