Doximity’s Earnings Call: Strong Growth Amid Caution

Doximity, Inc. ((DOCS)) has held its Q4 earnings call. Read on for the main highlights of the call.

Doximity’s latest earnings call showcased a strong financial performance and impressive user engagement, driven by significant revenue growth, robust EBITDA margins, and the successful adoption of AI tools. Despite these positive results, the company expressed caution regarding potential macroeconomic challenges and tougher year-over-year comparisons.

Revenue Growth Exceeds Expectations

Doximity reported an impressive $138 million in revenue for the fourth quarter, surpassing the high-end of their guidance range by 4%. For the full fiscal year, the company achieved $570 million in revenue, marking a 20% year-over-year growth. This growth underscores Doximity’s strong market position and effective strategic initiatives.

Strong EBITDA Performance

The company’s adjusted EBITDA margin for the fourth quarter was a notable 50%, translating to $70 million, which exceeded the high-end of their guidance by 10%. This robust performance highlights Doximity’s operational efficiency and ability to maintain high profitability.

Record User Engagement

Doximity experienced record highs in unique active users across all timeframes during Q4. Notably, newsfeed user engagement saw a significant increase, with articles read or tapped up more than 30% year-on-year, reflecting the platform’s growing influence and user base.

AI Tools Rapid Growth

The adoption of AI tools within Doximity’s platform grew more than fivefold year-on-year, indicating strong integration into medical workflows and a positive reception from users. This growth is a testament to the company’s innovation and focus on enhancing user experience through technology.

Successful Client Summits

Doximity received positive feedback from its 13th Annual Physician Tech Summit and the Annual Pharma Client Summit. There was strong interest in AI-powered solutions, demonstrating the company’s leadership in the intersection of healthcare and technology.

Robust Free Cash Flow

The company’s free cash flow for the fourth quarter was $97 million, up 56% year-on-year. For the full fiscal year, free cash flow reached $267 million, a 50% increase year-on-year, highlighting Doximity’s strong cash generation capabilities.

Macroeconomic Uncertainty

Despite the strong financial results, Doximity remains cautious about potential impacts from recent macroeconomic uncertainties and policy changes. This cautious approach is reflected in their guidance and strategic planning.

Challenging Year-Over-Year Comparison

Looking ahead, Doximity anticipates a challenging year-over-year comparison for fiscal 2026 due to the revenue growth upside experienced in fiscal 2025 from strategic shifts and early program launches.

Forward-Looking Guidance

For fiscal 2026, Doximity anticipates revenue between $619 million and $631 million, reflecting a 10% growth. The company also expects an adjusted EBITDA of $333 million to $345 million, with a 54% margin. With 70% of subscription-based revenue under contract, Doximity continues to invest in AI, aiming for long-term efficiency and growth despite macroeconomic uncertainties.

In summary, Doximity’s earnings call highlighted a strong financial performance with significant revenue growth and user engagement. The company remains optimistic about its future prospects, driven by continued investment in AI and strategic initiatives, while maintaining a cautious outlook due to macroeconomic uncertainties.