Q3 2025 Doximity Inc Earnings Call Transcript
Key Points
- Doximity Inc (DOCS) reported a 25% year-on-year revenue growth for the third quarter of fiscal 2025, reaching $169 million, which exceeded the high end of their guidance by 10%.
- The company achieved a record adjusted EBITDA margin of 61%, translating to $102 million, marking a 39% increase year-on-year.
- Doximity Inc (DOCS) saw significant growth in its network engagement, with unique active users hitting new highs across quarterly, monthly, and weekly metrics.
- The company's new products, particularly point of care and formulary products, grew over 100% in Q3, contributing to over 20% of pharmaceutical sales.
- Doximity Inc (DOCS) successfully expanded its client portal, with over half of its brand clients now having access, and plans to include all clients by 2025.
- Despite strong performance, the company acknowledged that the 61% EBITDA margin in Q3 might not be sustainable, advising to consider the annual margin of 54% as a more accurate representation.
- The health system business, while performing better than expected, still faces macroeconomic uncertainties and is not expected to see material growth in the near future.
- Doximity Inc (DOCS) noted that the digital market growth is expected to remain at 5% to 7%, with the majority of their growth attributed to share gains rather than market expansion.
- The company faces potential challenges with tougher revenue comparisons in fiscal 2026 due to the accelerated revenue recognition from January launches.
- There is uncertainty regarding the impact of macroeconomic factors and regulatory changes, such as the Inflation Reduction Act, on the pharmaceutical industry, which could affect future growth.
Hello, and welcome to Doximity's Fiscal 2025 third quarter earnings call. (Operator Instructions)
I would now like to turn the conference over to Perry Gold, Investor Relations. You may begin.
Thank you, operator. Hello and welcome to Doximity's Fiscal 2025 third quarter earnings call. With me on the call today are Jeff Tangney, Co-Founder and CEO of Doximity; Dr. Nate Gross, Co-Founder and CFO; and Anna Bryson, CFO.
A complete disclosure of our results can be found in our press release stated earlier today as well as in our related Form 8-K, along with a copy of our prepared remarks, all available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available on our website.
As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially, and we
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