Unity’s own users have access to a range of interactive connections, including livestreams and discussions, to get the most out of the platform by finding out what other users are doing with it. It’s part of Unity’s overall commitment to providing transparency in the service.A short trip through Unity’s website shows that the company can offer a wide range of services, including 2D and 3D game creation, user acquisition apps so that creators can bring in an audience, and monetization apps that allow creator ...

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $185 million, reflecting a 10% year-on-year growth and a 2% beat from the high end of guidance [6][14] - Adjusted EBITDA margin for Q3 was 60%, amounting to $111 million, which was 7% above the high end of guidance [7][14] - The net revenue retention rate was 112% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 117% [13][14] - Free cash flow generated in Q3 was $58.5 million, with cash, cash equivalents, and marketable securities totaling $735 million at the end of the quarter [15] Business Line Data and Key Metrics Changes - The company surpassed 3 million registered members, with over 85% of US physicians and two-thirds of NPs and PAs on the platform [7] - Unique active users for workflow tools reached a record 720,000 in Q3, marking the largest sequential gain ever [7] - Over 300,000 unique prescribers utilized AI products in Q3, with DocsGPT users querying the service an average of 4 times a week [9] Market Data and Key Metrics Changes - The company expects the healthcare and pharma digital advertising market to grow roughly 5% in calendar 2026, down from previous expectations [22] - The uncertainty surrounding Most Favored Nation (MFN) agreements impacted client budget deployments, leading to delays in signing deals [25][37] Company Strategy and Development Direction - The company aims to strengthen its AI-powered digital platform for doctors, focusing on building trust through its Peer Check program [12] - The strategy includes investing in AI infrastructure and development while maintaining a floor of 50% adjusted EBITDA margins [19][41] - The company plans to commercialize AI tools later in the year, tapping into clients' innovation and upsell budgets [19][40] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to policy headwinds and client uncertainty regarding budget allocations [17][25] - Despite a slower start to the year, management expressed optimism about ending calendar year 2026 with significantly better growth [19][46] - The company is positioned to capture the AI opportunity, with a focus on building trusted relationships with healthcare providers [66] Other Important Information - The company repurchased $196.8 million worth of shares during Q3 and has a new $500 million open-ended repurchase authorization [15] - The company has not yet included revenue from AI tools in its current guidance, as these products have not been commercialized [12][19] Q&A Session Questions and Answers Question: What is the expected market growth rate for calendar year 2026? - The company expects the market to grow roughly 5% in calendar 2026, influenced by recent policy changes and MFN agreements [22][25] Question: How does the company view the AI monetization opportunity? - The company sees a large opportunity in paid search and plans to tap into this market later in the year with commercial AI products [53] Question: What is the impact of policy uncertainty on pharma customers? - Many top 20 pharma customers faced delays in budget approvals due to policy uncertainty, but there is intent to deploy funds later in the year [37][63] Question: How is the company addressing talent retention in a competitive environment? - The company is focused on retaining talent by offering stock grants and fostering a mission-driven culture [71]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $185 million, reflecting a 10% year-on-year growth and a 2% beat from the high end of guidance [6][14] - Adjusted EBITDA margin for Q3 was 60%, amounting to $111 million, which was 7% above the high end of guidance [7][14] - The net revenue retention rate was 112% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 117% [13][14] Business Line Data and Key Metrics Changes - The company surpassed 3 million registered members, with over 85% of US physicians and two-thirds of NPs and PAs on the platform [7] - Unique active users for workflow tools reached a record 720,000 in Q3, marking the largest sequential gain ever [7][8] - Over 300,000 unique prescribers utilized the company's AI products in Q3, with active prescribers querying the AI tool an average of 4 times a week [9][10] Market Data and Key Metrics Changes - The company expects the healthcare and pharma digital advertising market to grow roughly 5% in calendar 2026, down from previous growth rates [22][23] - The uncertainty surrounding recent policy changes, particularly the most favored nation (MFN) agreements, impacted client budget deployments and deal signings [17][25] Company Strategy and Development Direction - The company aims to strengthen its AI-powered digital platform for doctors, focusing on building trust and ensuring physician oversight in AI applications [12][19] - The strategy includes significant investments in AI infrastructure and development, with expectations to maintain adjusted EBITDA margins of 50% or greater [19][41] - The company plans to commercialize its AI tools later in the year, tapping into clients' innovation and upsell budgets [19][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ending calendar year 2026 with significantly better growth than the start, driven by the release of previously unreleased client funds [46] - The company noted that digital marketing performs well in efficiency-driven environments, with a strong ROI for clients [68] - Management acknowledged the competitive landscape in AI and emphasized the importance of trust and relationships with healthcare providers [56][66] Other Important Information - The company generated free cash flow of $58.5 million in Q3 and ended the quarter with $735 million in cash and marketable securities [15] - A new $500 million open-ended share repurchase authorization was approved by the board [15] Q&A Session Summary Question: What is the growth rate expectation for the market in calendar year 2026? - The company expects the market to grow roughly 5% in calendar 2026, influenced by MFN agreements and client budget uncertainties [22][23] Question: How does the company view AI spending and innovation budgets? - The company anticipates that AI spending will ramp up as hospitals and health systems begin to adopt AI tools more broadly [26][27] Question: What is the company's strategy regarding AI monetization? - The company plans to introduce commercial AI products later this year, with expectations for revenue generation in the future [40][52] Question: How is the company addressing talent retention in a competitive environment? - The company is focusing on retaining its mission-driven team and offering stock grants to key personnel [71][72] Question: What are the expectations for the mid-year upsell season? - The company believes that as client funds are released, there will be opportunities for stronger upsell during the mid-year season [36][37]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $185 million, reflecting a 10% year-on-year growth and a 2% beat from the high end of guidance [4][5] - Adjusted EBITDA margin for Q3 was 60%, amounting to $111 million, which was 7% above the high end of guidance [5][12] - Non-GAAP gross margin for Q3 was 91%, down from 93% in the prior year, attributed to increased AI infrastructure investments [12][13] - Free cash flow generated in Q3 was $58.5 million, with cash, cash equivalents, and marketable securities totaling $735 million at the end of the quarter [13][14] Business Line Data and Key Metrics Changes - The company surpassed 3 million registered members, with over 85% of US physicians and two-thirds of NPs and PAs on the platform [5][6] - Unique active users for workflow tools reached a record 720,000 in Q3, marking the largest sequential gain ever [5][6] - Over 300,000 unique prescribers utilized AI products in Q3, with DocsGPT users querying an average of 4 times a week [8][9] Market Data and Key Metrics Changes - The company expects the healthcare and pharma digital advertising market to grow roughly 5% in calendar 2026 [20][22] - The net revenue retention rate was 112% on a trailing twelve-month basis, with top 20 customers showing a higher retention rate of 117% [12][13] Company Strategy and Development Direction - The company aims to strengthen its AI-powered digital platform for doctors, focusing on building trust through its Peer Check program [10][11] - The strategy includes investing in AI infrastructure and development while maintaining adjusted EBITDA margins of 50% or greater [15][18] - The company plans to commercialize its AI tools later in the year, tapping into clients' innovation and upsell budgets [18][44] Management's Comments on Operating Environment and Future Outlook - Management noted short-term industry-wide policy headwinds affecting client budgets, particularly due to recent policy changes [16][17] - Despite Q3 outperformance, the company anticipates a slower start to calendar 2026 but expects to end the year with significantly better growth [17][50] - The company is optimistic about the release of previously unreleased client funds and strong inbound demand for AI engagement [18][50] Other Important Information - The company repurchased $196.8 million worth of shares during Q3 and has a new $500 million open-ended repurchase authorization [14] - The company has over 10,000 U.S. physician experts reviewing clinical answers, enhancing the trustworthiness of its AI tools [10][11] Q&A Session Summary Question: What is the growth rate for the market in calendar year 2026? - Management expects the market to grow roughly 5% in calendar 2026, with MFN agreements impacting client budget deployments [20][22][25] Question: How does the company view AI monetization opportunities? - The company sees a large opportunity in paid search and plans to enter the market with commercial AI products later this year [58] Question: What is the strategy regarding AI infrastructure costs? - The company acknowledges that there will be costs without associated revenue for a few quarters but believes these investments are worthwhile for future growth [44][45] Question: How is the company addressing talent retention in a competitive environment? - The company is focusing on retaining mission-driven talent and offering stock grants to keep key personnel engaged [76][77] Question: What are the expectations for the mid-year upsell season? - Management believes that as client funds are released, there will be opportunities for stronger upsell during the mid-year season [40][41]

Core Insights - Hims & Hers Health, Inc. (HIMS) operates a technology-driven digital health platform that provides personalized care through software, data, and virtual clinical workflows [1][2] - The company has launched new services, including Labs for biomarker tracking and expanded offerings in menopause and men's health [2][7] - Recent acquisitions, including Livewell and YourBio Health, enhance HIMS' diagnostic capabilities and geographic reach [3][7] Company Developments - Hims & Hers has introduced Labs, allowing customers to monitor biomarkers and receive personalized action plans from doctors [2][7] - The company has expanded into menopause care and launched branded testosterone treatments with at-home testing options [2][7] - The acquisition of Livewell marks HIMS' entry into Canada, while YourBio Health integrates blood-sampling technology into its platform [3][7] Financial Performance - Hims & Hers shares have increased by 56.7% year to date, outperforming the industry growth of 8.1% [6] - The forward 12-month price-to-sales ratio for HIMS is 3.2X, lower than the industry average of 4.9X but higher than its three-year median of 2.6X [9] - The Zacks Consensus Estimate for HIMS' 2025 earnings per share indicates a 77.8% improvement from 2024 [9]

Financial Data and Key Metrics Changes - The company reported revenue of $169 million for Q2 2026, representing a 23% year-on-year growth and a 7% beat from the high end of guidance [6][11] - Adjusted EBITDA margin was 60%, amounting to $101 million, which was 15% above the high end of guidance [6][12] - Free cash flow increased by 37% year-on-year, reaching $91.6 million [13] Business Line Data and Key Metrics Changes - The company achieved an all-time record number of quarterly active subscribers for its Newsfeed, with double-digit growth in articles read [7] - Over 650,000 unique prescribers used the workflow tools in Q2, marking another all-time high [7] - AI tools saw the fastest growth, with quarterly active prescribers up more than 50% from the prior quarter [7] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis [11] - The number of customers contributing at least $500,000 each in subscription-based revenue increased by approximately 16% year-on-year [11] Company Strategy and Development Direction - The company is focusing on AI-optimized integrated programs, which represented over 40% of bookings in Q2, compared to less than 5% in the same quarter last year [15][39] - The integration of Pathway's medical data set and AI models into DoxGPT is expected to enhance the company's offerings in medical AI [8][60] - The company aims to maintain a 55%+ Adjusted EBITDA margin while investing in AI solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed some uncertainty regarding the 2026 budget discussions, indicating a cautious approach to revenue expectations [20][21] - Despite potential headwinds, management remains optimistic about client engagement and the performance of integrated programs [21] - The company expects revenue for Q3 2026 to be in the range of $180 million to $181 million, representing a 7% growth at the midpoint [14] Other Important Information - The company repurchased $21.9 million worth of shares during Q2, with $280 million remaining in the existing repurchase program [13] - The company is excited about the long-term growth opportunities presented by its AI suite [17] Q&A Session Summary Question: Uncertainty around budget discussions - Management indicated that the uncertainty primarily relates to calendar 2026 budgets, which are expected to be finalized soon [20] Question: Future AI opportunities - Management expressed excitement about the potential for AI to add significant value for physicians, with plans to continue expanding AI capabilities [22][23] Question: Budget allocation changes - Management noted that clients are considering potential changes in budget allocations, particularly in light of recent policy changes [28][30] Question: Impact of direct-to-consumer advertising - Management acknowledged that while there are discussions around D2C advertising, it is still early to assess the impact on budgets [29][30] Question: Integrated programs and visibility - Management clarified that integrated offerings represented 40% of upsell sales in Q2, which provides better visibility for future revenue [48][49] Question: Market share and growth - Management stated that the company has been growing at about two times the market growth rate, with a strong competitive position [88][89]

Financial Data and Key Metrics Changes - The company reported revenue of $169 million for Q2 2026, representing a 23% year-on-year growth and a 7% beat from the high end of guidance [6][11] - Adjusted EBITDA margin was 60%, amounting to $101 million, which was 15% above the high end of guidance [6][12] - Free cash flow increased by 37% year-on-year to $91.6 million [13] - Non-GAAP gross margin remained flat at 92% compared to the prior year [12] Business Line Data and Key Metrics Changes - The number of unique prescribers using workflow tools reached over 650,000, marking an all-time high [7] - AI tools saw a growth of over 50% in quarterly active prescribers from the previous quarter [7] - Integrated programs accounted for over 40% of bookings in Q2, a significant increase from less than 5% in the same quarter last year [15][39] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis [11] - The small-medium business segment saw a growth of approximately 100% year-on-year [45] Company Strategy and Development Direction - The company is focusing on AI-optimized integrated programs, which are expected to enhance client engagement and revenue predictability [16][39] - The integration of Pathway's medical data set and AI models into Docs GPT is seen as a significant advancement in medical AI [8][9] - The company aims to maintain a 55%+ adjusted EBITDA margin while investing in AI solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed some uncertainty regarding the 2026 budget discussions, indicating a cautious approach to revenue expectations [20][21] - Despite potential headwinds, management remains optimistic about client engagement and the growth of integrated programs [21][36] - The company expects revenue for Q3 2026 to be in the range of $180 million to $181 million, reflecting a 7% growth at the midpoint [14] Other Important Information - The company repurchased $21.9 million worth of shares during Q2, with $280 million remaining in the repurchase program [13] - The company has integrated a drug reference feature in Docs GPT, providing peer-reviewed answers to drug-related questions [8][62] Q&A Session Summary Question: Uncertainty around budget discussions - Management indicated that the uncertainty primarily relates to the 2026 budgets, which are expected to be finalized soon [20] Question: Future AI opportunities - Management expressed excitement about the potential for AI to add significant value for physicians and plans to continue investing in this area [22][23] Question: Changes in client budgeting allocations - Management noted that discussions with clients indicate some changes in budget allocations, particularly in light of recent policy changes [28][30] Question: Impact of direct-to-consumer advertising policies - Management acknowledged that it is early to assess the impact of new policies on direct-to-consumer advertising but sees potential opportunities [30] Question: Budget flush expectations - Management explained that the transition to integrated programs has led to a more even distribution of upsell dollars throughout the year, impacting budget flush dynamics [34][35] Question: AI strategy and revenue contribution - Management highlighted that AI-optimized programs are expected to significantly contribute to revenue growth in the future [39] Question: Market share in clinical reference - Management stated that they do not have a clear measure of market share in clinical reference but are focused on providing accurate, peer-reviewed answers [75][76] Question: Investment in AI tools - Management indicated that they are currently investing in AI tools and expect expenses to plateau as scale efficiencies are realized [82]

Financial Data and Key Metrics Changes - The company reported revenue of $169 million for Q2 2026, representing a 23% year-on-year growth and a 7% beat from the high end of guidance [4][9] - Adjusted EBITDA margin was 60%, amounting to $101 million, which was 15% above the high end of guidance [4][10] - Free cash flow increased by 37% year-on-year to $91.6 million [10] Business Line Data and Key Metrics Changes - The number of unique prescribers using workflow tools reached over 650,000, marking an all-time high [5] - AI tools saw quarterly active prescribers grow by more than 50% from the prior quarter [5] - Integrated programs accounted for over 40% of bookings in Q2, compared to less than 5% in the same quarter last year [12][13] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis [9] - The number of customers contributing at least $500,000 each in subscription-based revenue increased by roughly 16% year-on-year [9] Company Strategy and Development Direction - The company is focusing on AI-optimized integrated programs, which are expected to provide higher returns for clients and better predictability for the business long-term [15] - The integration of Pathway's medical data set and AI models into Docs GPT is seen as a significant advancement in medical AI [6][7] - The company aims to maintain a 55%+ adjusted EBITDA margin while investing in AI solutions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed some uncertainty regarding the 2026 budget discussions, indicating a cautious approach to revenue expectations [17][18] - Despite potential headwinds, management remains optimistic about client engagement and the performance of integrated programs [18] - The company expects revenue for Q3 2026 to be in the range of $180 million-$181 million, representing a 7% growth at the midpoint [11] Other Important Information - The company repurchased $21.9 million worth of shares during Q2, with $280 million remaining in the existing repurchase program [10] - The company has integrated a drug reference feature into Docs GPT, allowing for quick access to peer-reviewed answers [6][62] Q&A Session Summary Question: Uncertainty around budget discussions - Management indicated that the uncertainty primarily relates to the 2026 budgets, which are expected to be finalized soon, and noted high client engagement with their platform [17][18] Question: Future AI opportunities - Management expressed excitement about the potential for AI to add value for physicians and indicated plans to fully leverage AI capabilities [21] Question: Changes in client budgeting allocations - Management noted that it is too early to determine the impact of recent policy changes on client budgeting but acknowledged ongoing discussions with agency partners [25][28] Question: Impact of Pathway acquisition - Management highlighted the integration of Pathway as a key advancement, particularly in providing accurate drug-related information [57][62] Question: Market share and growth dynamics - Management confirmed that they are pacing ahead of last year in terms of new contract activity and expect to continue growing at a rate above the market average [81][83]

Core Insights - Doximity, Inc. is recognized as a leading healthcare technology stock, utilizing AI-driven tools and strategic acquisitions to enhance its market position [1] - The recent acquisition of Pathway Medical significantly improves Doximity's DoxGPT tool, providing instant access to verified medical data and AI responses [2] - Doximity has introduced Doximity Scribe, an AI tool that automates clinical documentation, thereby reducing administrative workload for clinicians [3] Financial Performance - In the last quarter ending June 30, 2025, Doximity reported a 15% year-over-year revenue increase, reaching $145.9 million, surpassing analyst expectations [4] - The company achieved non-GAAP earnings per share (EPS) of $0.36, indicating strong financial performance [4] - User engagement and product adoption have notably increased, particularly for new AI scribe and workflow tools [4]

Core Insights - The article discusses the 12 best healthcare stocks to buy and hold for five years, highlighting the role of AI in improving healthcare services and addressing insurance denials [1][4]. Group 1: AI in Healthcare - Dr. Warris Bokhari's platform utilizes AI to appeal health insurance denials for approximately 70 autoimmune diseases, addressing a significant issue where 850 million denials occur annually in the U.S. [2][3]. - The platform was launched on October 2, 2024, and aims to assist patients in navigating care denials by generating appeal letters based on healthcare plans [4]. Group 2: Stock Selection Methodology - The selection of the top healthcare stocks was based on criteria including EPS growth of over 10% in the past five years, an expected EPS growth rate of at least 20% over the next five years, and a forward PE ratio greater than 20 [6]. - The final ranking of stocks was influenced by the number of hedge fund holders as tracked by the Insider Monkey database as of Q2 2025 [6][7]. Group 3: Company Highlights - **Intuitive Surgical, Inc. (NASDAQ:ISRG)**: Pioneered robotic-assisted minimally invasive surgery with its da Vinci systems, which are used globally. The company introduced advanced software features for its da Vinci 5 system in September 2025, enhancing surgical capabilities [9][10]. - **Doximity, Inc. (NYSE:DOCS)**: A leading healthcare technology stock that completed the acquisition of Pathway Medical, enhancing its AI-driven tools. The company reported a 15% year-over-year revenue increase, reaching $145.9 million for the quarter ending June 30, 2025 [13][15]. - **Penumbra, Inc. (NYSE:PEN)**: A leader in thrombectomy and vascular intervention technologies, recently introduced the Ruby XL System and the Lightning Bolt 6X device, expanding its product offerings and market reach [16][18].