Doximity Q4 Earnings Likely to Reflect Strong Product Momentum

Core Viewpoint - Doximity (DOCS) is expected to report its fourth-quarter fiscal 2025 results on May 15, with a consensus estimate for revenues at $133.8 million and earnings at 27 cents per share, following a strong performance in the previous quarter where earnings exceeded estimates by 36.36% [1][2]. Group 1: Performance Expectations - The fourth-quarter performance is anticipated to benefit from the strong momentum of Doximity's product portfolio, particularly the growth of new modules and integrated offerings, with point-of-care and formulary modules experiencing over 100% year-over-year growth [3]. - Doximity's multi-module integrated programs have been a significant growth catalyst, allowing clients to launch campaigns more quickly, which is expected to lead to stronger revenue conversion in the fourth quarter compared to previous quarters [4]. - The client portal, utilized by over half of pharmaceutical brand partners, is contributing to commercial traction by providing actionable insights through real-time ROI analytics [5]. Group 2: Usage Trends and Growth Projections - AI-powered tools have seen a 60% sequential increase in usage, with 1.8 million prompts submitted by physicians, indicating growing engagement that supports long-term monetization of Doximity's workflow products [6]. - Despite a strong third quarter, Doximity expects a more modest 13% year-over-year revenue growth for the upcoming quarter, suggesting that early revenue pull-forward from January launches may limit sequential growth [7]. - The end of Doximity's major annual buying cycle in the third quarter may result in a lighter fourth quarter for new bookings, potentially constraining expansion in new products or module sales [8]. Group 3: Market Conditions - The health system segment is stabilizing but continues to face macroeconomic uncertainty, which could limit growth in workflow-based tools like telehealth or scheduling that complement commercial products [9]. - The current earnings ESP for Doximity is 0.00%, indicating that the model does not predict an earnings beat this time around, with a Zacks Rank of 3 (Hold) [10][11].