Core Insights - The integration of artificial intelligence (AI) in healthcare is creating new tech-driven innovators, with Tempus AI and Doximity emerging as key players in the AI health tech space [1][2] Tempus AI - Tempus AI focuses on AI-driven precision medicine, particularly in oncology and chronic disease management [2] - The company reported a 35.8% year-over-year revenue growth in Q4 2024, with gross profit rising by 49.7%, indicating improved operational leverage [3] - Tempus AI's Data and Services business achieved a 140% net revenue retention rate and has $940 million in remaining contract value, which management plans to reinvest in technology and talent [3] - Recent acquisitions of Deep 6 AI and Ambry Genetics expanded Tempus AI's clinical footprint to over 750 sites and 30 million patients, enhancing its precision medicine platform [4] - Although Q4 adjusted EBITDA was negative $7.8 million, it showed a $27.3 million year-over-year improvement, with expectations of reaching $5 million in positive adjusted EBITDA [5] - The Zacks Consensus Estimate suggests a 63% improvement in Tempus AI's loss per share for 2025 compared to 2024 [11] Doximity - Doximity reported a 25% year-over-year revenue increase in Q3 fiscal 2025, exceeding guidance by 10%, and raised full-year revenue expectations by $28 million [6] - Adjusted EBITDA reached a record $102 million with a 61% margin, up from 54% the previous year, indicating a scalable business model [6] - User engagement metrics are strong, with over 1 million prescribers on the news feed and a 60% quarter-over-quarter increase in AI usage [7] - Doximity is positioned to outpace the market with expected revenue growth of 13% in Q4 and 19% for the full year [8] - The Zacks Consensus Estimate implies a 37.9% improvement in Doximity's EPS for fiscal 2025 compared to the previous fiscal [12] Stock Performance & Valuation - Over the past three months, Tempus AI's stock has increased by 24.6%, while Doximity's stock has risen by 3.7%. However, Doximity has seen a 99.3% increase over the past year compared to Tempus AI's 0.1% rise [9] - Tempus AI trades at a forward price-to-sales (P/S) ratio of 5.24, below its one-year median of 8.49, while Doximity's forward sales multiple is 15.29, above its median of 14.39 [13] - Doximity has an average brokerage recommendation of 2.20, indicating a "Buy," while Tempus AI has a recommendation of 2.24, indicating a "Hold" [14][17] Investment Outlook - Doximity is considered a more stable and financially sound investment opportunity, with strong profitability, margins, and user engagement [20] - Tempus AI, while rapidly growing, is still in the investment phase and has yet to report positive earnings, making it less attractive for risk-averse investors [21]