Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 FY2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [7] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [7] - Free cash flow increased by 52% year-on-year, reaching $60.1 million [22] - Non-GAAP gross margin for Q1 was 91%, down from 92% in the prior year [21] Business Line Data and Key Metrics Changes - Unique active users across all metrics (quarterly, monthly, daily) reached record highs, with double-digit percentage growth year-on-year [9] - The number of unique active prescribers using workflow tools reached 630,000, marking significant engagement [9] - The AI tools experienced over 5x year-on-year growth [9] Market Data and Key Metrics Changes - Doximity's net revenue retention rate was 118% on a trailing twelve-month basis, with the top 20 customers showing a higher rate of 119% [20] - The company ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue, a 17% increase from the previous year [21] Company Strategy and Development Direction - Doximity is focusing on AI integration, with the launch of the Doximity AI Scribe and the acquisition of Pathway, aiming to enhance physician productivity [19][23] - The company plans to integrate Scribe into telehealth tools, creating a seamless experience for physicians [13] - Doximity aims to build a comprehensive AI suite that addresses clinical questions and enhances workflow efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainty, noting no slowdown in customer budgets [27] - The outlook for FY2026 includes revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [25] - Management highlighted the importance of AI investments for long-term growth and productivity improvements [56] Other Important Information - The Pathway acquisition was completed for $26 million in cash and up to $37 million in equity grants, with no expected revenue contribution this year [24] - The company repurchased $122.3 million worth of shares during the first quarter [23] Q&A Session Summary Question: How can you frame the opportunity for investors regarding Scribe, Pathways, and Doximity GPT? - Management sees these AI tools as a potential third act, enhancing physician engagement and addressing clinical questions in real-time [31] Question: Can you provide insights on customer budgets and the second half guidance? - Management noted strong Q1 performance but cautioned against extrapolating this into the second half due to policy uncertainties [36] Question: What are the qualitative differences in upsell cycles this year? - Management indicated broad-based strength across all customer segments, with significant growth in SMB customers [40] Question: How do you view the drivers of continued provider use of products? - Management highlighted the stickiness of workflow tools and the importance of AI in enhancing user engagement [48] Question: Will the new AI offerings become standalone revenue generators? - Management anticipates that AI products like Scribe could evolve into enterprise revenue streams similar to the Doximity Dialer [59] Question: What is the current state of the Provider Solutions business? - Management reported strong traction in the health system business, particularly in enterprise offerings [99] Question: How is the news feed performing and what developments are there? - Management noted record high engagement in the news feed, with video content becoming increasingly important [109]

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [5][18] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [5][6] - Free cash flow grew by 52% year-on-year, reaching $60.1 million [21] - Non-GAAP gross margin was 91%, slightly down from 92% in the prior year [20] Business Line Data and Key Metrics Changes - Unique active users across all engagement metrics hit record highs, with a significant increase in the use of workflow tools [7] - The Doximity AI Scribe launched, with over 10,000 healthcare professionals participating in beta testing, indicating strong initial adoption [8][9] - The Pathway acquisition is expected to enhance clinical reference tools, although no immediate revenue contribution is anticipated this fiscal year [22] Market Data and Key Metrics Changes - The company reported a net revenue retention rate of 118% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 119% [18] - The agency partners contributed to over 100% year-on-year bookings growth in the SMB customer segment [25] Company Strategy and Development Direction - Doximity is focusing on integrating AI tools into its offerings, with the Scribe and Pathway acquisition seen as pivotal for long-term growth [26][17] - The company aims to enhance physician productivity through its AI suite, which includes tools for note-taking and clinical question answering [17][26] - The strategy includes making clinical reference tools free to users, thereby increasing engagement and adoption [22][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainties, noting that client budgets remain robust [35][112] - The outlook for the full fiscal year is revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [24] - Management remains cautious about the second half of the year, taking a measured approach to unbooked revenue due to policy uncertainties [35][112] Other Important Information - The company ended the quarter with $841 million in cash and equivalents, and repurchased $122.3 million worth of shares [21][22] - The Pathway acquisition cost $26 million in cash and up to $37 million in equity grants, with minimal impact on expenses expected this fiscal year [22][23] Q&A Session Summary Question: How can investors frame the opportunity with Scribe and Pathway? - Management highlighted that AI tools could represent a significant growth opportunity, potentially as large as previous product launches [28][32] Question: What insights are there regarding customer budgets for the second half of the year? - Management noted that while Q1 was strong, it is the smallest bookings quarter, and they are taking a cautious approach due to policy uncertainties [33][35] Question: Can you elaborate on the upsell cycle and the role of the client portal? - Management indicated that all business segments are performing well, with the client portal providing valuable insights that have driven significant growth in SMB customers [40][42] Question: What are the drivers of increased utilization of Doximity's products? - Management pointed to strong growth in workflow tools and telehealth products, with AI enhancing the newsfeed's relevance and engagement [46][50] Question: How does the Pathway acquisition fit into Doximity's overall strategy? - Management confirmed that Pathway's integration is progressing well, with plans to offer its tools for free to enhance user engagement [82][84]

Core Insights - Doximity (DOCS) and iRhythm Technologies (IRTC) are prominent players in AI-powered healthcare, with Doximity focusing on clinician engagement and workflow, while iRhythm specializes in AI-driven cardiac monitoring [2][4] - Doximity reported fiscal 2025 revenues of $570.4 million, a 20% increase year-over-year, and a 48% rise in operating cash flow [2] - iRhythm Technologies achieved full-year 2024 revenues of $591.8 million, reflecting a 20.1% year-over-year growth [3] Company Overview - Doximity serves over 80% of U.S. physicians with a platform that includes telehealth and workflow tools [5] - iRhythm Technologies focuses on AI-driven cardiac monitoring through its Zio platform, which provides clinically validated diagnostics [5] Financial Performance - Doximity's fourth quarter of fiscal 2025 saw revenues of $138.3 million and net income of $62.5 million, with a 56% increase in free cash flow [7] - iRhythm's first-quarter 2025 revenues reached $158.7 million, a 20.3% year-over-year increase, despite a net loss of $30.7 million [10] Stock Performance - Year-to-date, Doximity's share price increased by 6.9%, while iRhythm's surged by 61.4% [6][9] - Doximity's stock performance is impacted by risks related to drug-pricing reforms and changes in pharmaceutical advertising budgets [6] AI Integration - Doximity has integrated AI into clinical workflows, notably with Doximity GPT, which automates documentation [11] - iRhythm employs AI for diagnostics through its Zio platform, supported by the ZEUS AI system for interpreting cardiac data [13] Growth Outlook - Doximity anticipates fiscal 2026 revenues between $619 million and $631 million, with adjusted EBITDA of $333-$345 million [14] - iRhythm raised its revenue outlook for the full year to $690-$700 million, with EBITDA margins projected at 7.5-8.5% [14] Investment Appeal - Doximity is viewed as a stable investment with profitability and a large user base, appealing to risk-averse investors [19] - iRhythm presents a higher-risk, higher-reward opportunity driven by innovative diagnostics and expanding clinical applications [19]

Core Insights - Doximity, Inc. has developed a client engagement and retention strategy centered on integrated, physician-first tools across its Marketing, Hiring, and Workflow Solutions, resulting in over 620,000 unique providers using its clinical tools in Q4 of fiscal 2025 [1] Group 1: Marketing Solutions - Doximity's Marketing Solutions utilize AI and machine learning to deliver personalized campaigns, enabling pharmaceutical and health system clients to effectively reach specific clinician segments with relevant content [2] - This targeted approach has led to measurable engagement, prompting clients to broaden their usage across various brands or service lines [2] Group 2: Customer Retention Strategies - The company invests in a robust customer success team that collaborates with clients to optimize campaigns and provide ongoing analytics, which has fostered upsell opportunities and long-term relationships [3] - Clients benefit from a self-serve portal that offers real-time insights, enhancing the overall customer experience [3] Group 3: Workflow Solutions - Doximity's Workflow Solutions, such as Dialer Enterprise and AMiON, have gained significant traction and are now integrated into hospital operations, reducing the likelihood of clients transitioning away from the platform [4] - Recent innovations like Doximity GPT, an AI-powered writing assistant, further alleviate administrative burdens for clients [4] Group 4: Competitive Landscape - GoodRx Holdings, Inc. has launched Community Link to enhance pharmacy engagement through cost-plus pricing, while also introducing a new erectile dysfunction subscription service to streamline consumer access [5] - Veeva Systems Inc. is enhancing client engagement through its Vault CRM Suite, which integrates medical, sales, and service teams, and has reported momentum in products that provide real-time insights [6] Group 5: Financial Performance - Doximity's shares have increased by 9.6% year-to-date, contrasting with the industry's decline of 0.9% [7] - The Zacks Consensus Estimate indicates a 3.5% improvement in Doximity's earnings per share for fiscal 2026 compared to fiscal 2025 [9] - The company's forward 12-month P/E ratio stands at 39.4X, higher than the industry average of 14.6X but lower than its three-year median of 48.9X [12]

Core Insights - Doximity's shares have decreased by approximately 4.4% over the past month despite solid fiscal Q4 2025 results, which included revenues of $138.3 million and a 50% adjusted EBITDA margin [1][3] - For fiscal 2025, total revenues reached $570.4 million, reflecting a 20% year-over-year increase, with adjusted EBITDA rising 36% to $313.8 million and margin expanding to 55% [1][4] Financial Performance - In Q4 2025, Doximity's revenues increased by 17% to $138.3 million, with an adjusted EBITDA margin of 50% [8] - The company reported a free cash flow of $97 million in Q4, contributing to a total cash position of $916 million by the end of the quarter [3][4] - Doximity raised its fiscal 2025 revenue guidance by $55-65 million to a range of $619-$631 million, indicating a 10% growth at the midpoint [5] Client Engagement and Retention - Net revenue retention reached 119% on a trailing 12-month basis, with the top 20 clients achieving a retention rate of 123% [9] - The number of customers generating over $500,000 in annual subscription revenues grew by 17% to 116, accounting for 84% of total revenues [9] Growth Drivers - Continued revenue and margin expansion were evident, with Q4 2025 top line exceeding guidance by 4% and adjusted EBITDA surpassing guidance by 10% [4] - Doximity's integrated multi-module programs and AI tools have accelerated client upsells and engagement [8] Challenges and Competition - The company faces macro and policy uncertainties, with management conservatively projecting a 5-7% growth in the pharmaceutical HCP digital market for fiscal 2026 [13] - Doximity competes with established players like Veeva Systems, Teladoc Health, and IQVIA Holdings for clinician engagement and marketing budgets [14][15] - Monetization of AI products remains low, with management acknowledging uncertainties regarding payback periods and long-term margin contributions [16] Valuation and Investment Outlook - Doximity's shares are considered overvalued, trading at a forward P/E of 36.05X compared to the sector's 14.26X [10] - The company demonstrates a profitable, high-growth business model, but challenges include macro uncertainties and competition for physician attention [20]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $138 million, which is 4% above the high end of guidance and represents a 17% year-over-year increase [7][17] - For the full fiscal year, revenue reached $570 million, growing 20% year-over-year [7][17] - Adjusted EBITDA for Q4 was $70 million, with a margin of 50%, exceeding guidance by 10% [8][19] - Free cash flow for Q4 was $97 million, up 56% year-over-year, and for the full year, it was $267 million, an increase of 50% year-over-year [8][20] Business Line Data and Key Metrics Changes - The top 20 clients grew revenue by 23% in fiscal 2025, indicating strong performance from the largest customers [7][18] - The company ended the quarter with 116 customers contributing at least $500,000 each in subscription-based revenue, a 17% increase from the previous year [18] - Non-GAAP gross margin for Q4 was 91%, flat year-over-year, while for the full year, it was 92% compared to 91% last year [19] Market Data and Key Metrics Changes - The company expects the Pharma HCP digital market to grow at approximately 5% to 7% in the upcoming year, with the company anticipating to grow at roughly twice the market rate [24] - The company has under 70% of its initial subscription-based revenue guidance under contract, reflecting a cautious approach to macroeconomic uncertainties [24][111] Company Strategy and Development Direction - The company is focusing on multi-module integrated offerings, which have led to larger deal sizes and more efficient launch timelines [17][23] - There is a strong emphasis on AI investments to enhance tools for members and clients, with expectations of significant long-term benefits [25] - The company aims to maintain its competitive position in the Pharma business, which is expected to remain the fastest-growing segment [24] Management's Comments on Operating Environment and Future Outlook - Management has not observed any signs of market slowdown but acknowledges the potential for macroeconomic uncertainties to impact client spending [27][41] - The mood among pharma clients is described as cautiously optimistic, with excitement around AI tools [31][41] - The company is preparing for a tougher year-over-year comparison due to the transition to earlier program launches [23] Other Important Information - The company repurchased $26.8 million worth of shares in Q4 and $116.2 million for the full fiscal year [20] - The company is excited about the potential of AI to improve efficiency and drive growth, viewing it as a critical component of future strategy [25][91] Q&A Session Summary Question: How are customer conversations regarding spending in the current macro environment? - Management has not seen signs of a market slowdown yet, but there is cautious optimism among clients regarding AI tools [27][28] Question: What is the expected payback period for AI investments? - The company is still in early stages of understanding AI's impact on efficiency and margins, but they are already seeing positive results from AI investments [32][34] Question: How does the company view the impact of potential drug pricing constraints? - There has been no direct feedback from clients regarding the No Handouts for Drug Advertisements Act, but the company is focused on transparency and accessibility [56] Question: What is the outlook for the point of care solutions? - The company sees point of care as a diversified channel with significant growth potential, and clients are increasingly leaning into this area [90] Question: How does the company view the revenue cadence throughout the year? - The company expects a more stable revenue growth cadence due to integrated programs and anticipates Q3 to be the highest quarter due to upselling [101][102]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $138 million, which is 4% above the high end of guidance and represents a 17% year-over-year increase [5][15] - For the full fiscal year, revenue reached $570 million, growing 20% year-over-year [6][15] - Adjusted EBITDA for Q4 was $70 million, with a margin of 50%, exceeding guidance by 10% [6][17] - Free cash flow for Q4 was $97 million, up 56% year-over-year, and for the full year, it was $267 million, an increase of 50% [6][18] - The adjusted EBITDA margin for the full fiscal year was 55%, up from 48% the previous year [6][18] Business Line Data and Key Metrics Changes - The top 20 clients grew revenue by 23% in fiscal 2025, indicating strong performance among the largest customers [6][16] - The company ended the quarter with 116 customers contributing at least $500,000 each in subscription-based revenue, a 17% increase from the previous year [16] - Unique active users across various engagement metrics reached record highs, particularly driven by the newsfeed product [7] Market Data and Key Metrics Changes - The company expects the Pharma HCP digital market to grow at approximately 5% to 7% in the upcoming year, with the company anticipating to grow at roughly twice the market rate [22] - The net revenue retention rate was 119% on a trailing twelve-month basis, with the top 20 customers at 123% [16] Company Strategy and Development Direction - The company is focusing on multi-module integrated offerings, which have led to larger deal sizes and more efficient launch timelines [15][21] - There is a strong emphasis on AI investments to enhance tools for members and clients, with expectations of significant long-term benefits [23] - The company aims to maintain a competitive position in the Pharma sector, which is projected to be the fastest-growing business segment [22] Management's Comments on Operating Environment and Future Outlook - Management has not observed any signs of market slowdown but is cautious due to macroeconomic uncertainties [25][30] - The mood among pharma clients is described as cautiously optimistic, with excitement around AI tools [30] - The company is preparing for potential impacts from policy uncertainties while maintaining a positive outlook on growth [40][41] Other Important Information - The company repurchased $26.8 million worth of shares in Q4 and $116.2 million for the full fiscal year [18] - The company ended the year with $916 million in cash, cash equivalents, and marketable securities [18] Q&A Session Summary Question: How are customer conversations regarding spending in the current macro environment? - Management noted that there have been no signs of a market slowdown yet, but they are assuming some material policy uncertainty [25][30] Question: What is the expected payback period for AI investments? - Management indicated that it is still early to determine the exact impact of AI on long-term margins, but they are already seeing benefits from AI investments [31][33] Question: How does the company view the impact of potential drug pricing constraints? - Management acknowledged discussions around drug pricing but noted that clients typically have separate teams for direct-to-consumer marketing, making immediate impacts less likely [52][54] Question: What is the outlook for revenue growth and seasonality? - Management expects a more predictable revenue curve due to integrated programs and anticipates Q3 to be the highest quarter due to upselling [97][98] Question: How is the company addressing the allocation of budgets across digital channels? - Management reported that clients are leaning more into endemic channels, with no signs of slowing growth for their offerings [62][63]