Doximity (DOCS, Financial), a digital platform for healthcare professionals, reported a strong Q4 performance, surpassing both revenue and earnings expectations. This success is attributed to robust demand from its key customers.
Highlights from the report include: - A net revenue retention rate of 114%, signaling high renewal rates. - FY25 revenue guidance is set between $506 million and $518 million, slightly below expectations. - A significant $500 million share repurchase program was unveiled, underpinned by a 37% year-over-year increase in free cash flow to $62 million. - Adjusted EBITDA for FY24 rose by 25% to $230 million, with a remarkable Q4 adjusted EBITDA margin of 48%.
The company's top twenty customers showed a net revenue retention rate of 122%, and the number of customers generating over $500,000 in subscription revenue grew by 23% year-over-year. Over 400,000 new healthcare professionals registered on the platform in FY24, marking the second-largest annual increase in the company's history.
Doximity is also enhancing its AI capabilities, introducing a HIPAA compliant medical writing assistant and integrating with Perplexity, an AI answer engine for physicians. These advancements are set to bolster the platform's utility and user base further.
Despite some challenges in expanding new business from health system customers, Doximity remains strong and is strategically positioned to thrive in the digital transformation of the healthcare sector, with AI playing an increasingly significant role.
