Doximity, Inc. Q4 FY2025 earnings call

• Financials: Q4 2025 revenue was $138 million, 4% above guidance; full year revenue $570 million, up 20% y-o-y. Adjusted EBITDA margin in Q4 was 50% ($70 million), and full year adjusted EBITDA was $314 million with a 55% margin. Free cash flow in Q4 was $97 million, up 56% y-o-y, and full year free cash flow was $267 million, up 50% y-o-y.
• Network growth: Unique active users across quarterly, monthly, weekly, and daily bases hit fresh highs in Q4, led by the newsfeed. Workflow tools, including AI, saw strong growth.
• Client summits: The 13th Annual Physician Tech Summit in March featured Doximity GPT products, with physicians valuing specialty-specific AI tools. The Pharma Client Summit in April focused on AI orchestration and client portal insights, with clients interested in optimizing programs using AI.
• AI investments: Doximity is increasing investments in AI to build better tools, develop smarter solutions for clients, and drive efficiency across the business.

For the fourth quarter of fiscal 2025, Doximity delivered $138 million in revenue, which was 4% above the high-end of the guidance range. For the full fiscal year ended March 31, 2025, revenue was $570 million, growing 20% year-on-year. The newsfeed is the most used and monetized product, with unique newsfeed users hitting record highs and articles read/tapped up over 30% year-on-year. Workflow tools, including telehealth, fax, scheduling, and AI tools, hit fresh highs in Q4, with AI tools growing over 5x year-on-year. Point-of-care and formulary workflow channels have seen robust growth, with over 100% year-on-year growth in Q3. The top 20 clients grew the fastest at 23% in fiscal 2025, accounting for a significant portion of revenue.

• For Q1 2026, revenue is expected to be in the range of $139 million to $140 million (10% growth at midpoint), and adjusted EBITDA in the range of $71 million to $72 million (51% margin).
• For full fiscal year 2026, revenue is expected to be in the range of $619 million to $631 million (10% growth at midpoint), and adjusted EBITDA in the range of $333 million to $345 million (54% margin).
• Fiscal 2025 benefited from strategic shifts to multi-module integrated offerings, leading to earlier program launches, but fiscal 2026 faces tougher year-over-year comparisons due to this transition.

• Macro uncertainty: There is policy uncertainty that could impact the market growth rate, and while no impact has been seen yet, it is assumed to be a factor. Upsells are considered more variable, which is factored into the guidance.
• Market competition: There are other channels and competitors, but Doximity believes in gaining share through superior ROI and client engagement.

Q: How are customer conversations regarding willingness to spend this year and their perspective on administration volatility?

A: Jeff Tangney stated that no signs of a market slowdown have been seen yet, but there is material policy uncertainty. Pharma clients are cautiously optimistic, with AI-cheery clients leveraging AI for better results. The portal continues to evolve and provide insights.

Q: What is the payback period on AI investments?

A: Anna Bryson mentioned that AI investments are still in the early stages, and it's too soon to know the exact payback period, but the company is seeing early benefits and guiding to strong adjusted EBITDA margins.

Q: How are share gains being seen?

A: Anna Bryson noted strong share gains from the inflection in workflow modules being seen as core and the client portal providing real-time ROI insights, helping clients make buying decisions and take more share.

Q: Were the No Handouts for Drug Advertisements Act discussed at the Pharma Client Summit?

A: Jeff Tangney said there has been discussion around the act, but no specific updates from clients were reported at the time, and the company focuses on investing in products like formulary that align with physician and patient priorities.

Q: How is seasonality being thought about for revenue cadence?

A: Anna Bryson explained that the nature of customers' buying cycles involves upfront spending and upsells throughout the year, with January program launches leading to natural step-ups, and integrated programs expected to improve revenue predictability long-term.