Doximity(US:DOCS)2026-02-05 21:09Revenue and Growth - Revenue for the three months ended December 31, 2025, was $185.1 million, a 10% increase from $168.6 million in the same period of 2024[140] - For the nine months ended December 31, 2025, revenue reached $499.5 million, reflecting a 16% growth compared to $432.1 million in 2024[140] - Revenue for the three months ended December 31, 2025 increased by $16.5 million (10%) compared to the same period in 2024, primarily driven by a $13.1 million increase in subscription revenue[172] - Subscription revenue for the nine months ended December 31, 2025 increased by $60.9 million, with $15.4 million from new subscription customers and $45.5 million from existing customers[172] - Approximately 95% of the company's revenue for the three and nine months ended December 31, 2025 was derived from subscription customers[172] Profitability and Income - Net income for the three months ended December 31, 2025, was $61.6 million, down from $75.2 million in 2024, while adjusted EBITDA was $111.4 million, up from $102.0 million[140] - Net income for the three months ended December 31, 2025 was $61.6 million, a decrease of $13.6 million (18%) compared to the same period in 2024[170] - Gross profit for the three months ended December 31, 2025 was $166.4 million, an increase of $11.9 million (8%) compared to the same period in 2024[172] Customer Metrics - The number of customers with trailing 12-month subscription revenue greater than $500,000 increased to 126 in 2025 from 115 in 2024, accounting for approximately 84% of total revenue[143] - The net revenue retention rate decreased to 112% in 2025 from 117% in 2024, indicating a slight decline in revenue growth from existing customers[145] Expenses - Research and development expenses are expected to increase as the company continues to grow its platform and product offerings[163] - Research and development expenses for the three months ended December 31, 2025 increased by $12.2 million (54%) compared to the same period in 2024, driven by stock-based compensation and personnel costs[174] - Sales and marketing expenses for the three months ended December 31, 2025 increased by $3.7 million (10%) compared to the same period in 2024, primarily due to stock-based compensation[177] - General and administrative expenses for the three months ended December 31, 2025 increased by $4.1 million (30%) compared to the same period in 2024, driven by legal expenses and stock-based compensation[179] - Total operating expenses for the nine months ended December 31, 2025 were $258.5 million, an increase of $46.9 million (22%) compared to the same period in 2024[170] Cash Flow and Financial Position - Free cash flow for the nine months ended December 31, 2025, was $210.2 million, compared to $169.8 million in 2024, demonstrating improved cash generation[154] - Net cash provided by operating activities for the nine months ended December 31, 2025, was $216.9 million, an increase from $174.8 million in the same period in 2024[193][194] - Cash provided by investing activities was $9.2 million for the nine months ended December 31, 2025, primarily from marketable securities[196] - Cash used in financing activities was $370.9 million for the nine months ended December 31, 2025, mainly due to common stock repurchases of $341.1 million[198] - As of December 31, 2025, the company had cash and cash equivalents and marketable securities totaling $735.1 million[187] Share Repurchase and Taxation - The company repurchased 8,648,145 shares of Class A common stock for an aggregate purchase price of $417.0 million as of December 31, 2025, with $83.0 million remaining authorized for repurchase[188] - The effective income tax rate for the company differs from the U.S. statutory tax rate of 21.0% primarily due to stock-based compensation related tax benefits[168] Other Income and Charges - Other income, net for the three months ended December 31, 2025, decreased by 10% to $8.9 million compared to the same period in 2024, primarily due to lower interest income[182][183] - Other income, net for the nine months ended December 31, 2025, increased by 7% to $27.8 million compared to the same period in 2024, driven by a higher average portfolio balance[184] - Provision for income taxes for the three months ended December 31, 2025, increased by 31% to $19.2 million compared to the same period in 2024[185] - The impairment charge for the nine months ended December 31, 2024, was $2.3 million due to a sublease of the Curative office space in Irving, Texas[181] Business Strategy - The business model focuses on providing digital tools for medical professionals, enhancing productivity and patient care[138] - The company aims to expand its market presence and enhance its product offerings through strategic investments and innovations[139] Market Sensitivity - A hypothetical 100 basis point increase in interest rates would have resulted in a decrease of $4.6 million in the market value of cash equivalents and marketable securities as of December 31, 2025[205]