Doximity(US:DOCS)2025-11-06 21:13Financial Performance - For the three months ended September 30, 2025, the company recognized revenue of $168.5 million, a year-over-year growth rate of 23% compared to $136.8 million in 2024[138]. - The net income for the three months ended September 30, 2025, was $62.1 million, up from $44.2 million in the same period of 2024, representing a net income margin of 37%[138][148]. - The adjusted EBITDA for the three months ended September 30, 2025, was $100.8 million, compared to $76.1 million in 2024, resulting in an adjusted EBITDA margin of 60%[138][148]. - Revenue for the three months ended September 30, 2025, increased by $31.7 million (23%) compared to the same period in 2024, primarily driven by a $29.8 million increase in subscription revenue[171]. - Gross profit for the three months ended September 30, 2025, was $152.1 million, representing a 24% increase compared to the same period in 2024[171]. - Other income, net for the three months ended September 30, 2025 was $9.0 million, a decrease of 3% compared to $9.3 million in the same period of 2024[182]. - Provision for income taxes decreased by $7.1 million (40%) for the three months ended September 30, 2025, and by $8.1 million (27%) for the six months ended September 30, 2025 compared to the same periods in 2024[184]. Customer Metrics - The number of customers with trailing 12-month subscription revenue greater than $500,000 increased to 121 in 2025 from 104 in 2024, accounting for approximately 84% of total revenue[141][142]. - The net revenue retention rate improved to 118% for the trailing 12 months ended September 30, 2025, compared to 116% in 2024[143]. - Approximately 95% of revenue for the three and six months ended September 30, 2025, was derived from subscription customers[171]. Cash Flow and Investments - Free cash flow for the six months ended September 30, 2025, was $151.7 million, up from $106.3 million in 2024[152]. - Cash provided by operating activities was $156.0 million for the six months ended September 30, 2025, compared to $109.6 million for the same period in 2024[192]. - Cash used in investing activities was $29.0 million for the six months ended September 30, 2025, primarily due to $268.2 million in marketable securities purchases[193]. - Cash used in financing activities was $167.4 million for the six months ended September 30, 2025, mainly from common stock repurchases of $144.2 million[195]. - As of September 30, 2025, the company had cash and cash equivalents and marketable securities totaling $878.4 million[185]. - The company had cash and cash equivalents of $169.2 million and marketable securities of $709.1 million as of September 30, 2025[201]. Expenses - Research and development expenses for the three months ended September 30, 2025, increased by $6.9 million (30%) compared to the same period in 2024, driven by stock-based compensation and contractor costs[173]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $4.8 million (14%) compared to the same period in 2024, primarily due to stock-based compensation and marketing activities[177]. - General and administrative expenses for the three months ended September 30, 2025, increased by $8.9 million (89%) compared to the same period in 2024, driven by legal expenses and stock-based compensation[179]. - Research and development expenses are expected to increase as the company continues to grow its platform and product offerings[161]. Strategic Initiatives - The company plans to continue investing in cloud infrastructure and customer support to support business growth[157]. - The business model is designed to drive value for customers, primarily pharmaceutical manufacturers and health systems, through marketing, hiring, and workflow solutions[137]. - The company serves over 80% of U.S. physicians, making it the leading digital platform for medical professionals in the U.S.[135]. Shareholder Actions - The company repurchased 4,496,467 shares of Class A common stock for $220.2 million under a $500 million repurchase program authorized on May 1, 2024[186].