Financial Data and Key Metrics Changes - The company reported $169 million in revenue for Q3 FY2025, representing a 25% year-on-year growth and a 10% beat from the high end of guidance [10] - Adjusted EBITDA margin reached a record 61%, or $102 million, which was up 39% year-on-year and 21% above the high end of guidance [11][22] - Free cash flow for Q3 was $63.4 million, an increase of 30% year-over-year [24] Business Line Data and Key Metrics Changes - The top twenty clients grew by 122% on a trailing twelve-month basis, indicating strong demand from major pharmaceutical companies [10] - Unique active users across various engagement metrics hit fresh highs, with over 610,000 unique active prescribers using workflow tools [12][13] - New point of care and formulary products grew over 100% in Q3, contributing over 20% of pharmaceutical sales [15] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 117% on a trailing twelve-month basis, with top twenty customers at 122% [21] - The digital market for pharma healthcare professionals is expected to grow at a rate of 5 to 7% [34] Company Strategy and Development Direction - The company is focusing on expanding its client portal, with plans to onboard all clients by 2025 [18] - Integrated programs are being emphasized, allowing clients to personalize and optimize their campaigns, which has led to larger deal sizes [17][27] - The company aims to grow ahead of the overall market, leveraging strong competitive positioning and record engagement [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the majority of growth was driven by share gains rather than overall market improvement, outperforming the market by about 3x this year [108] - The company expects to see a more consistent revenue curve as more customers move into multi-module integrated programs [61] - There is optimism about the potential for growth in the pharma digital market, as it remains under-indexed compared to other industries [145][146] Other Important Information - The company repurchased $19.2 million worth of shares during Q3, with $451 million remaining in the repurchase program [24] - AI tools are being utilized to enhance operational efficiency, contributing to margin expansion [88][89] Q&A Session Summary Question: Insights on customer buying patterns between portal users and non-portal users - Management indicated that portal clients have shown higher growth and that the portal allows for better tracking of return on investment [38] Question: Clarification on EBITDA margins - Management explained that the high EBITDA margin in Q3 was due to top-line outperformance and that quarterly variations should be expected [42] Question: Drivers of momentum in sales - Management attributed the momentum to both new products and the rollout of the client portal, which facilitates easier transactions [48] Question: Changes in revenue recognition seasonality - Management noted that larger multi-module integrated programs could lead to a more consistent revenue curve year-over-year [61] Question: Targeting nurse practitioners and physician assistants - The company has over 60% of nurse practitioners as members and is focused on expanding this segment [64] Question: Revenue from point of care and formulary products - Management stated that point of care products account for 20% of overall revenue and see significant growth potential in AI products [140] Question: Future product roadmap - Management expressed excitement about new product ideas, particularly in AI, which has not yet been monetized [87] Question: Market growth expectations - Management believes that the 5 to 7% growth rate for the pharma digital market could increase as the industry shifts more budget towards digital [146]

Doximity (DOCS) Q3 2025 Earnings Call February 07, 2025 02:14 AM ET Company Participants Perry Gold - VP-IRJeff Tangney - Co-Founder and CEOAnna Bryson - CFOBrian Peterson - Managing DirectorGlen Santangelo - Managing DirectorRyan Daniels - Group Head–Healthcare Technology and ServicesRichard Close - Managing DirectorScott Schoenhaus - Managing DirectorNate Gross - Co-Founder & Chief Strategy OfficerAnne Samuel - Executive DirectorJeff Garro - Managing DirectorDavid Roman - Managing DirectorJailendra Singh ...

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]