Doximity (DOCS, Financial) is positioned to gain from shifting trends in healthcare provider interactions, as highlighted in recent insights from Veeva's quarterly report on Pulse Field Trends. Analyst observations from Raymond James reveal a significant rise in email engagement with healthcare providers, though global open rates have dipped by 2%, with a more noticeable 5% drop in the U.S.
This trend indicates a growing necessity for life sciences companies to diversify their sales and marketing strategies, focusing on innovative channels and enhancing campaign analysis and attribution. These adjustments are necessary to maintain efficient access to providers, creating opportunities for companies like Doximity (DOCS, Financial) and Veeva. The brokerage has assigned an Outperform rating to both stocks, reflecting confidence in their potential growth within this evolving landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Doximity Inc (DOCS, Financial) is $61.47 with a high estimate of $88.00 and a low estimate of $50.00. The average target implies an upside of 18.28% from the current price of $51.97. More detailed estimate data can be found on the Doximity Inc (DOCS) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Doximity Inc's (DOCS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Doximity Inc (DOCS, Financial) in one year is $54.24, suggesting a upside of 4.37% from the current price of $51.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Doximity Inc (DOCS) Summary page.
DOCS Key Business Developments
Release Date: May 15, 2025
- Q4 Revenue: $138 million, 4% above guidance.
- Full Year Revenue: $570 million, 20% year-on-year growth.
- Top 20 Clients Growth: 23% in fiscal 2025.
- Q4 Adjusted EBITDA Margin: 50%, $70 million, 10% above guidance.
- Q4 Free Cash Flow: $97 million, up 56% year-on-year.
- Full Year Adjusted EBITDA: $314 million, 36% growth.
- Full Year Adjusted EBITDA Margin: 55%, up from 48% prior year.
- Full Year Free Cash Flow: $267 million, 50% increase year-on-year.
- Net Revenue Retention Rate: 119% overall, 123% for top 20 customers.
- Customers with $500K+ Revenue: 116 customers, 17% increase from last year.
- Q4 Non-GAAP Gross Margin: 91%, flat year-over-year.
- Full Year Non-GAAP Gross Margin: 92%, up from 91% last year.
- Cash and Equivalents: $916 million at year-end.
- Share Repurchase: $26.8 million in Q4, $116.2 million for the full year.
- Q1 2026 Revenue Guidance: $139 million to $140 million, 10% growth at midpoint.
- Q1 2026 Adjusted EBITDA Guidance: $71 million to $72 million, 51% margin.
- Full Year 2026 Revenue Guidance: $619 million to $631 million, 10% growth at midpoint.
- Full Year 2026 Adjusted EBITDA Guidance: $333 million to $345 million, 54% margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Doximity Inc (DOCS, Financial) reported $138 million in revenue for Q4 2025, exceeding the high end of their guidance by 4%.
- The company achieved a 20% year-over-year revenue growth for the full fiscal year, reaching $570 million.
- Adjusted EBITDA margin for Q4 was 50%, surpassing guidance by 10%, and for the full year, it was 55%, up from 48% the previous year.
- Unique active users across all timeframes hit new highs, with significant growth in their news feed and AI tools.
- Doximity's integrated offerings and AI-powered tools are gaining traction, leading to larger deal sizes and improved client engagement.
Negative Points
- Despite strong performance, Doximity Inc (DOCS) is cautious about potential macroeconomic uncertainties affecting future growth.
- The company anticipates a tougher year-over-year comparison for fiscal 2026 due to the strategic shift in program launches.
- There is a reliance on a small number of large clients, with the top 20 customers contributing significantly to revenue growth.
- The market growth rate for the pharma HCP digital market is expected to be on the lower end of the 5% to 7% range.
- Doximity Inc (DOCS) is still in the early stages of AI investment, and the long-term impact on margins and efficiency remains uncertain.
