Doximity(DOCS) - 2025 Q4 - Annual Results

Executive Summary & Financial Highlights Doximity achieved strong financial performance in Q4 and full fiscal year 2025, marked by significant revenue growth, increased profitability, and robust cash flow generation Q4 Fiscal Year 2025 Financial Highlights Doximity closed fiscal year 2025 with strong fourth-quarter performance, marked by significant revenue growth, increased profitability, and robust cash flow generation, reporting a 17% year-over-year increase in total revenues and substantial growth in operating and free cash flow - Doximity achieved record engagement and strong profits in Q4 FY2025, with its newsfeed, workflow, and AI tools reaching new highs, aiding doctors in saving time and improving patient care[4] Q4 Fiscal Year 2025 Financial Performance | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change | Margin Q4 FY2025 | Margin Q4 FY2024 | | :-------------------------------- | :----------------------- | :----------------------- | :--------- | :--------------- | :--------------- | | Total Revenues | $138.3 | $118.1 | 17% | - | - | | Subscription Revenue | $131.9 | $112.7 | 17% | - | - | | Net Income | $62.5 | $40.6 | 54% | 45.2% | 34.4% | | Non-GAAP Net Income | $77.7 | $51.0 | 52% | 56.2% | 43.2% | | Adjusted EBITDA | $69.7 | $56.4 | 24% | 50.4% | 47.8% | | Diluted Net Income Per Share | $0.31 | $0.20 | 55% | - | - | | Non-GAAP Diluted Net Income Per Share | $0.38 | $0.25 | 52% | - | - | | Operating Cash Flow | $98.5 | $63.9 | 54% | - | - | | Free Cash Flow | $97.0 | $62.3 | 56% | - | - | Fiscal Year 2025 Financial Highlights For the full fiscal year 2025, Doximity delivered strong financial results, achieving 20% year-over-year revenue growth and substantial increases in profitability and cash flow, reflecting robust platform engagement and operational efficiency Fiscal Year 2025 Financial Performance | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change | Margin FY2025 | Margin FY2024 | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | :------------ | :------------ | | Total Revenues | $570.4 | $475.4 | 20% | - | - | | Subscription Revenue | $543.8 | $450.1 | 21% | - | - | | Net Income | $223.2 | $147.6 | 51% | 39.1% | 31.0% | | Non-GAAP Net Income | $286.1 | $195.6 | 46% | 50.2% | 41.2% | | Adjusted EBITDA | $313.8 | $230.5 | 36% | 55.0% | 48.5% | | Diluted Net Income Per Share | $1.11 | $0.72 | 54% | - | - | | Non-GAAP Diluted Net Income Per Share | $1.42 | $0.95 | 49% | - | - | | Operating Cash Flow | $273.3 | $184.1 | 48% | - | - | | Free Cash Flow | $266.7 | $178.3 | 50% | - | - | Financial Outlook Doximity provides forward-looking guidance for Q1 and the full fiscal year 2026, projecting continued revenue growth and healthy Adjusted EBITDA Q1 Fiscal Year 2026 Guidance Doximity provided guidance for the first fiscal quarter ending June 30, 2025, projecting continued revenue growth and strong Adjusted EBITDA Q1 Fiscal Year 2026 Projections | Metric | Q1 FY2026 Guidance (Millions USD) | | :-------------- | :------------------------------- | | Revenue | $139 - $140 | | Adjusted EBITDA | $71 - $72 | Fiscal Year 2026 Guidance For the full fiscal year ending March 31, 2026, Doximity anticipates further revenue expansion and healthy Adjusted EBITDA margins Fiscal Year 2026 Projections | Metric | FY2026 Guidance (Millions USD) | | :-------------- | :------------------------------- | | Revenue | $619 - $631 | | Adjusted EBITDA | $333 - $345 | Company Overview Doximity is the leading digital platform for U.S. medical professionals, dedicated to enhancing doctor productivity and improving patient care through innovative digital tools About Doximity Doximity, founded in 2010, is the leading digital platform for U.S. medical professionals, serving over 80% of U.S. physicians, with a mission to enhance doctor productivity and improve patient care - Doximity is the leading digital platform for U.S. medical professionals, with over 80% of U.S. physicians as network members[10] - The platform provides verified clinical members with digital tools for collaboration, staying updated on medical news, career management, streamlining administrative tasks, and conducting virtual patient visits[10] - Doximity's mission is to help doctors be more productive to provide better care for their patients[10] Financial Statements (GAAP) Doximity's GAAP financial statements for Q4 and FY2025 reflect a strong balance sheet, robust revenue growth, and significant increases in net income and cash flow Consolidated Balance Sheets As of March 31, 2025, Doximity's balance sheet shows a healthy financial position with significant increases in cash and marketable securities, contributing to a substantial rise in total assets and stockholders' equity year-over-year Consolidated Balance Sheet Data | Metric (Thousands USD) | March 31, 2025 | March 31, 2024 | YoY Change | | :-------------------------------- | :------------- | :------------- | :--------- | | Assets | | | | | Cash and cash equivalents | $209,614 | $96,785 | 116.6% | | Marketable securities | $706,050 | $666,115 | 6.0% | | Total current assets | $1,088,620 | $912,941 | 19.2% | | Total assets | $1,264,309 | $1,079,374 | 17.1% | | Liabilities | | | | | Total current liabilities | $156,257 | $147,250 | 6.1% | | Total liabilities | $181,684 | $177,977 | 2.1% | | Stockholders' Equity | | | | | Total stockholders' equity | $1,082,625 | $901,397 | 20.1% | Consolidated Statements of Operations Doximity's consolidated statements of operations for Q4 and FY2025 demonstrate strong revenue growth and improved profitability, with net income significantly increasing year-over-year, driven by higher gross profit and controlled operating expenses Consolidated Statements of Operations Data | Metric (Thousands USD, except per share) | Q4 FY2025 | Q4 FY2024 | YoY Change | FY2025 | FY2024 | YoY Change | | :-------------------------------------- | :-------- | :-------- | :--------- | :----- | :----- | :--------- | | Revenue | $138,288 | $118,057 | 17.1% | $570,399 | $475,422 | 20.0% | | Gross profit | $123,821 | $105,490 | 17.4% | $514,525 | $424,753 | 21.1% | | Income from operations | $48,680 | $41,852 | 16.3% | $227,800 | $163,878 | 39.0% | | Net income | $62,458 | $40,618 | 53.8% | $223,185 | $147,582 | 51.2% | | Diluted net income per share | $0.31 | $0.20 | 55.0% | $1.11 | $0.72 | 54.2% | | Total stock-based compensation expense | $18,060 | $11,857 | 52.3% | $72,386 | $51,076 | 41.7% | Consolidated Statements of Cash Flows Doximity demonstrated strong cash generation in both Q4 and the full fiscal year 2025, with significant increases in net cash provided by operating activities and free cash flow, while also managing investing and financing activities Consolidated Statements of Cash Flows Data | Metric (Thousands USD) | Q4 FY2025 | Q4 FY2024 | YoY Change | FY2025 | FY2024 | YoY Change | | :-------------------------------------- | :-------- | :-------- | :--------- | :----- | :----- | :--------- | | Net cash provided by operating activities | $98,487 | $63,944 | 54.0% | $273,265 | $184,096 | 48.4% | | Net cash provided by (used in) investing activities | $(24,473) | $(76,170) | 67.9% | $(29,298) | $31,186 | -193.9% | | Net cash used in financing activities | $(29,670) | $(14,078) | 110.7% | $(131,138) | $(276,524) | 52.6% | | Net increase (decrease) in cash and cash equivalents | $44,344 | $(26,304) | -268.2% | $112,829 | $(61,242) | -284.2% | | Cash and cash equivalents, end of period | $209,614 | $96,785 | 116.6% | $209,614 | $96,785 | 116.6% | Non-GAAP Financial Measures & Key Business Metrics This section details Doximity's non-GAAP financial measures and key business metrics, providing a comprehensive view of operational performance and growth drivers Explanation of Non-GAAP Measures Doximity utilizes several non-GAAP financial measures, including non-GAAP gross profit, net income, and Adjusted EBITDA, to provide a more comprehensive view of its financial performance by excluding certain non-cash or non-recurring items - Non-GAAP measures exclude stock-based compensation, amortization of acquired intangible assets, changes in fair value of contingent earn-out consideration, and restructuring/impairment charges[21] - Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, and amortization, further adjusted for stock-based compensation, contingent earn-out consideration, restructuring/impairment charges, and other income, net[21] - Free cash flow is calculated as cash flow from operating activities minus purchases of property and equipment and internal-use software development costs[21] Key Business Metrics Definitions Doximity tracks key business metrics such as net revenue retention rate, which measures subscription-based revenue growth from existing customers, and the number of customers with trailing 12-month subscription revenue greater than $500,000, indicating business scale - Net revenue retention rate measures the trailing 12-month subscription-based revenue from existing customers, reflecting renewals, expansion, contraction, and churn[22] - Customers with trailing 12-month subscription revenue greater than $500,000 is a key indicator of business scale, counting customers contributing over $500,000 in subscription revenue over the TTM period[22] Reconciliation of GAAP to Non-GAAP Financial Measures The reconciliation tables provide a detailed breakdown of adjustments made to GAAP figures to arrive at non-GAAP metrics, highlighting the impact of stock-based compensation, amortization, and other items on profitability and cash flow for both quarterly and annual periods Reconciliation of Net Income (GAAP) to Adjusted EBITDA | Metric (Thousands USD, except percentages) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------------- | :-------- | :-------- | :----- | :----- | | Net income (GAAP) | $62,458 | $40,618 | $223,185 | $147,582 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Depreciation and amortization | 2,829 | 2,548 | 10,659 | 10,265 | | Provision for (benefit from) income taxes | (4,064) | 7,335 | 40,389 | 37,620 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Other income, net | (9,714) | (6,101) | (35,774) | (21,324) | | Adjusted EBITDA | $69,736 | $56,440 | $313,829 | $230,460 | | Net income margin (GAAP) | 45.2% | 34.4% | 39.1% | 31.0% | | Adjusted EBITDA margin | 50.4% | 47.8% | 55.0% | 48.5% | Reconciliation of Cash Flow from Operating Activities to Free Cash Flow | Metric (Thousands USD) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------- | :-------- | :-------- | :----- | :----- | | Net cash provided by operating activities | $98,487 | $63,944 | $273,265 | $184,096 | | Purchases of property and equipment | — | — | — | (147) | | Internal-use software development costs | (1,507) | (1,634) | (6,525) | (5,654) | | Free cash flow | $96,980 | $62,310 | $266,740 | $178,295 | Reconciliation of GAAP to Non-GAAP Operating Income and Net Income | Metric (Thousands USD, except per share) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------------- | :-------- | :-------- | :----- | :----- | | GAAP operating income | $48,680 | $41,852 | $227,800 | $163,878 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Amortization of acquired intangibles | 1,061 | 1,061 | 4,244 | 4,518 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | Non-GAAP operating income | $67,968 | $54,953 | $307,414 | $224,713 | | GAAP net income | $62,458 | $40,618 | $223,185 | $147,582 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Amortization of acquired intangibles | 1,061 | 1,061 | 4,244 | 4,518 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | Income tax effect of non-GAAP adjustments | (4,050) | (2,751) | (16,719) | (12,775) | | Non-GAAP net income | $77,696 | $50,968 | $286,080 | $195,642 | | Non-GAAP net income margin | 56.2% | 43.2% | 50.2% | 41.2% | | Non-GAAP diluted net income per share | $0.38 | $0.25 | $1.42 | $0.95 |