Key Takeaways Doximity's Q4 2025 revenues rose 17% to $138.3 million with a 50% adjusted EBITDA margin. DOCS' Integrated multi-module programs and expanded AI tools accelerated client upsells and engagement. DOCS' client portal insights and efficient January launches drove early revenue recognition and retention.Over the past month, Doximity’s (DOCS) shares have lost approximately 4.4% despite the company reporting solid fourth-quarter fiscal 2025 results with $138.3 million in revenues and a 50% adjusted ...

Key Takeaways DOCS reported Q4 revenues of $138.3M, up 17% YoY, driven by robust subscription revenue growth. Record engagement came from DOCS' newsfeed and AI tools, with the latter growing more than 5x YoY Sales to DOCS' top 20 clients jumped 23% in fiscal 2025, supporting sustained growth into fiscal 2026.Doximity (DOCS) ended the fiscal 2025 with robust growth in its top line. The performance is also likely to continue in fiscal 2026 as demand for telehealth and related services continues to rise. Tot ...

Core Viewpoint - Johnson Fistel, PLLP is investigating potential legal claims on behalf of Doximity, Inc. shareholders regarding alleged misconduct by certain officers and directors that may have harmed the company and its investors [1] Group 1: Legal Proceedings - The Court overseeing the securities fraud class action against Doximity denied the defendants' motion to dismiss, indicating that the plaintiffs sufficiently alleged that the defendants made materially false and/or misleading statements [1][2] - Allegations include misrepresentation of the number of active physician users on Doximity's platform and false claims of increasing user engagement, despite contrary internal data and survey evidence [2] Group 2: Company Challenges - The complaint highlights that Doximity's management touted growth prospects and revenue sustainability while downplaying challenges such as increased competition and tightening macroeconomic conditions [2] - The company is noted to rely on "upselling" advertising and services to existing clients, which may pose risks to its revenue model [2]

Anand Chokkavelu, CFA has no position in any of the stocks mentioned. Rick Munarriz has no position in any of the stocks mentioned. Toby Bordelon has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy. ...

Revenue and Growth - Revenue growth rates for fiscal years 2024 and 2025 were 13% and 20% respectively, indicating a potential decline in future growth [84]. - The company expects to invest heavily in growth, which may lead to increased sales and marketing, research and development expenses, and declining margins [86]. - The company must continually attract new customers and reduce non-renewals to grow its business, as many customers do not enter long-term contracts [94]. - The company has a limited operating history, making it difficult to predict future operating results and increasing investment risk [88]. - Market opportunity estimates and growth forecasts are subject to significant uncertainty, and even if markets grow, the company may not achieve similar growth rates [113]. - The anticipated benefits from growth initiatives and operating plans are based on assumptions that may prove inaccurate, potentially impacting the company's financial results [155]. Customer Concentration and Risks - The revenue is concentrated within a small number of key customers, with no single customer accounting for 10% or more of total revenue for the fiscal years ended March 31, 2025, 2024, and 2023 [97]. - The company relies on a limited number of customers and agencies for a significant portion of its revenue, increasing credit risk if their financial conditions decline [100]. - Economic conditions, including inflation and potential recessions, may lead customers to reduce spending on the company's solutions [96]. - The loss of significant pharmaceutical brands could adversely affect revenue and relationships with customers [110]. Competition and Market Position - The company anticipates increasing competition in the market for its solutions, particularly from larger established companies and emerging smaller firms [101]. - The company competes for marketing, hiring, and IT budgets from pharmaceutical and health system companies, facing competition from both online and offline organizations [102]. - Maintaining and enhancing brand recognition is critical for attracting new customers and retaining existing ones, with potential substantial investments required [103]. - The company’s "physicians first" philosophy may lead to decisions that prioritize member interests over immediate financial gains, potentially impacting revenue [104]. Operational Challenges - The company faces significant challenges in managing growth, which could negatively impact its reputation and operating results [85]. - The company faces challenges in maintaining its corporate culture amid rapid growth and remote work, which could impact innovation and employee retention [108]. - The company may experience fluctuations in tax obligations and effective tax rates due to changes in tax laws and regulations, which could materially affect results of operations [140]. - The company incurs significant expenses related to being a public company, which may divert management's focus from growth strategies [180]. Compliance and Regulatory Risks - The company faces potential compliance costs and regulatory actions due to proposed or enacted laws governing AI development and use, which may impact service offerings and business efficiency [123]. - Significant resources may be required to ensure compliance with various data protection requirements, which could fundamentally affect business activities and result in material harm [124]. - The evolving regulatory landscape may increase operational costs and affect the company's financial results [216]. - The company faces risks related to compliance with federal and state healthcare laws, which could lead to significant penalties if not adhered to [209]. Intellectual Property and Technology - The company may face challenges in protecting its intellectual property from unauthorized use, which could harm its brand and business [184]. - The company has not yet obtained any issued patents that provide protection for its technology or products, and pending patent applications may not result in issued patents [190]. - The company relies on trade secrets and confidentiality agreements to protect its proprietary information, but these measures may not be fully effective [197]. - The integration of third-party technologies poses risks, including potential inability to generate sufficient revenue to offset acquisition and maintenance costs [162]. Financial Position and Market Risks - The company had cash and cash equivalents of $209.6 million and marketable securities of $706.1 million as of March 31, 2025, compared to $96.8 million and $666.1 million, respectively, as of March 31, 2024 [332]. - A hypothetical 100 basis point increase in interest rates would have resulted in a decrease of $5.4 million in the market value of cash equivalents and marketable securities as of March 31, 2025 [333]. - The company is exposed to market risks from interest rate changes, which may affect interest income and the fair value of investments [332]. - The dual class common stock structure allows certain affiliates to significantly influence corporate matters, limiting stockholder control [231]. Strategic Relationships and Acquisitions - The company has completed acquisitions, including Curative Talent in fiscal 2021 and AMiON in fiscal 2023, and may pursue further acquisitions to enhance capabilities and expand market reach [148]. - The company depends on strategic relationships with third parties for growth, and failure to maintain these relationships could impair its competitive position [159]. - The company may need to obtain additional licenses for technology and data used in its applications, and restrictions on these licenses could adversely affect its operations [160]. Miscellaneous Risks - The company's platform is vulnerable to cybersecurity threats, which could lead to unauthorized access, data loss, and significant financial implications [125]. - The company may incur substantial damages and penalties for noncompliance with communication laws, such as the Telephone Consumer Protection Act (TCPA), which could adversely affect business operations [136]. - The company may face significant litigation costs and potential judgments that could adversely affect its financial condition and results of operations [145]. - The company may experience disruptions from pandemics or other catastrophic events, affecting its operations and financial results [169][171].

Core Insights - Doximity, Inc. reported better-than-expected earnings for Q4, with earnings of 38 cents per share, surpassing the analyst consensus estimate of 27 cents per share [1] - The company achieved quarterly sales of $138.29 million, exceeding the analyst consensus estimate of $133.73 million [1] Financial Performance - Doximity closed fiscal 2025 with record engagement, strong profits, and 20% annual revenue growth [2] - The company guided for fiscal Q1 revenue of $139 million to $140 million, below estimates of $143.34 million [2] - Full-year 2026 revenue is forecasted to be between $619 million to $631 million, compared to estimates of $634.6 million [2] Stock Performance - Following the earnings announcement, Doximity shares fell by 9.8%, trading at $52.72 [3] - Analysts adjusted their price targets for Doximity after the earnings report [3] Analyst Ratings - Needham analyst Scott Berg maintained a Buy rating but lowered the price target from $82 to $67 [8] - Canaccord Genuity analyst Richard Close maintained a Hold rating and reduced the price target from $71 to $50 [8] - Raymond James analyst Brian Peterson maintained an Outperform rating, lowering the price target from $83 to $65 [8] - Truist Securities analyst Jailendra Singh maintained a Hold rating and slashed the price target from $58 to $52 [8]

Doximity (DOCS) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 38 cents, which beat the Zacks Consensus Estimate of 27 cents by 40.7%. The company also reported earnings of 25 cents per share in the prior-year quarter.Adjusted EPS for fiscal 2025 was $1.42, up 49.5% year over year.DOCS registered GAAP net income per share of 31 cents, up from the year-ago quarter’s figure of 20 cents. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Revenue Details of Doxi ...

Doximity (DOCS) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40.74%. A quarter ago, it was expected that this medical social networking site would post earnings of $0.33 per share when it actually produced earnings of $0.45, delivering a surprise of 36.36%.Over the last four quarte ...

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]