Total revenues of $168.6 million, up 25%
year-over-year Net income growth of 57% and adjusted EBITDA growth
of 39% year-over-year
Doximity, Inc. (NYSE: DOCS), the leading digital platform for
U.S. medical professionals, today announced results of its fiscal
2025 third quarter ended December 31, 2024.
“We’re proud to deliver another quarter of record engagement in
Q3, with over 610,000 unique providers using our clinical workflow
tools,” said Jeff Tangney, co-founder and CEO of Doximity. “Our AI
tools grew the fastest last quarter, up 60% over the prior quarter,
while our newsfeed surpassed more than one million unique
providers.”
Fiscal 2025 Third Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months
ended December 31, 2023.
- Revenue: Revenue of $168.6 million, versus $135.3
million, an increase of 25% year-over-year.
- Net income and non-GAAP net income: Net income of $75.2
million, versus $48.0 million, representing a margin of 44.6%,
versus 35.4%. Non-GAAP net income of $91.4 million, versus $58.5
million, representing a margin of 54.2%, versus 43.2%.
- Adjusted EBITDA: Adjusted EBITDA of $102.0 million,
versus $73.3 million, an increase of 39% year-over-year,
representing adjusted EBITDA margins of 60.5%, versus 54.2%.
- Diluted net income per share and non-GAAP diluted net income
per share: Diluted net income per share was $0.37, versus
$0.24, while non-GAAP diluted net income per share was $0.45,
versus $0.29.
- Operating cash flow and free cash flow: Operating cash
flow of $65.2 million, versus $50.1 million, an increase of 30%
year-over-year, and free cash flow of $63.4 million, versus $48.7
million, an increase of 30% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal fourth quarter
ending March 31, 2025 as follows:
- Revenue between $132.5 million and $133.5 million.
- Adjusted EBITDA between $62.5 million and $63.5 million.
Doximity is updating guidance for its fiscal year ending March
31, 2025 as follows:
- Revenue between $564.6 million and $565.6 million.
- Adjusted EBITDA between $306.6 million and $307.6 million.
Conference Call Information
Doximity posted prepared remarks on its investor relations
website at https://investors.doximity.com. Doximity will host a
webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to
discuss these financial results. To listen to a live audio webcast,
please visit the Company’s Investor Relations page at
https://investors.doximity.com. The archived webcast will be
available on the Company’s Investor Relations page shortly after
the call.
About Doximity
Founded in 2010, Doximity is the leading digital platform for
U.S. medical professionals. The company's network members include
more than 80% of U.S. physicians across all specialties and
practice areas. Doximity provides its verified clinical membership
with digital tools built for medicine, enabling them to collaborate
with colleagues, stay up to date with the latest medical news and
research, manage their careers and on-call schedules, streamline
documentation and administrative paperwork, and conduct virtual
patient visits. Doximity's mission is to help doctors be more
productive so they can provide better care for their patients.
Forward-Looking Statements
Statements we make in this press release may include statements
which are not historical facts and are considered forward-looking
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act, which are usually identified by
the use of words such as “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “may,” “plans,” “projects,” “seeks,”
“should,” “will,” and variations of such words or similar
expressions. We intend these forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act and are making this
statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current
views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available
to us and on assumptions we have made. Although we believe that our
plans, intentions, expectations, strategies and prospects as
reflected in or suggested by those forward-looking statements are
reasonable, we can give no assurance that the plans, intentions,
expectations, or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those
described in the forward-looking statements and will be affected by
a variety of risks and factors including (i) the timing and scope
of anticipated stock repurchases; (ii) the impact of uncertainty in
the current economic environment and macroeconomic uncertainty;
(iii) our ability to retain existing members or add new members to
our platform and maintain or grow their engagement with our
platform; (iv) our ability to attract new customers or retain
existing customers; (v) the impact of our prioritization of our
members’ interests; (vi) breaches in our security measures or
unauthorized access to members’ data; (vii) our ability to maintain
or manage our growth, and other risks and factors that are beyond
our control including, without limitation, those set forth in the
section entitled “Risk Factors” in our Annual Report on Form 10-K
for the fiscal year ended March 31, 2024 and as may be updated in
any subsequent Quarterly Reports on Form 10-Q. Moreover, we operate
in a very competitive and rapidly changing environment. New risks
and uncertainties emerge from time to time, and it is not possible
for us to predict all risks and uncertainties that could cause
actual results to differ materially from those contained in our
forward-looking statements. The forward-looking statements made in
this press release relate only to management’s beliefs and
assumptions as of this date. We assume no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
DOXIMITY, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
December 31, 2024
March 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
165,270
$
96,785
Marketable securities
679,670
666,115
Accounts receivable, net
137,504
101,332
Prepaid expenses and other current
assets
30,259
48,709
Total current assets
1,012,703
912,941
Property and equipment, net
13,477
12,318
Deferred income tax assets
43,079
45,068
Operating lease right-of-use assets
9,332
12,332
Intangible assets, net
24,134
27,317
Goodwill
67,940
67,940
Other assets
1,492
1,458
Total assets
$
1,172,157
$
1,079,374
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
1,636
$
2,253
Accrued expenses and other current
liabilities
42,793
43,703
Deferred revenue, current
69,197
99,145
Operating lease liabilities, current
2,255
2,149
Total current liabilities
115,881
147,250
Deferred revenue, non-current
73
211
Operating lease liabilities,
non-current
10,692
12,397
Contingent earn-out consideration
liability, non-current
5,498
10,895
Other liabilities, non-current
8,893
7,224
Total liabilities
141,037
177,977
Stockholders' Equity
Preferred stock
—
—
Common stock
188
187
Additional paid-in capital
878,701
823,885
Accumulated other comprehensive income
(loss)
1,015
(2,664
)
Retained earnings
151,216
79,989
Total stockholders’ equity
1,031,120
901,397
Total liabilities and stockholders’
equity
$
1,172,157
$
1,079,374
DOXIMITY, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
(unaudited)
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
Revenue
$
168,603
$
135,284
$
432,111
$
357,365
Cost of revenue(1)
14,181
12,190
41,407
38,102
Gross profit
154,422
123,094
390,704
319,263
Operating expenses(1):
Research and development
22,421
19,946
68,235
61,835
Sales and marketing
38,491
34,956
108,102
99,612
General and administrative
13,585
9,641
32,943
27,854
Restructuring and impairment charges
—
—
2,304
7,936
Total operating expenses
74,497
64,543
211,584
197,237
Income from operations
79,925
58,551
179,120
122,026
Other income, net
9,915
4,481
26,060
15,223
Income before income taxes
89,840
63,032
205,180
137,249
Provision for income taxes
14,644
15,076
44,453
30,285
Net income
$
75,196
$
47,956
$
160,727
$
106,964
Net income per share attributable to Class
A and Class B common stockholders:
Basic
$
0.40
$
0.26
$
0.86
$
0.56
Diluted
$
0.37
$
0.24
$
0.80
$
0.52
Weighted-average shares used in computing
net income per share attributable to Class A and Class B common
stockholders:
Basic
187,161
186,309
186,344
191,302
Diluted
202,233
200,463
200,625
207,265
(1) Costs and expenses include stock-based compensation expense
as follows (in thousands):
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
Cost of revenue
$
2,818
$
2,466
$
8,373
$
7,205
Research and development
4,471
3,080
14,602
8,874
Sales and marketing
6,487
4,060
19,881
12,752
General and administrative
5,592
2,165
11,470
6,742
Restructuring
—
—
—
3,646
Total stock-based compensation expense
$
19,368
$
11,771
$
54,326
$
39,219
DOXIMITY, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
Cash flows from operating
activities
Net income
$
75,196
$
47,956
$
160,727
$
106,964
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
2,655
2,509
7,830
7,717
Deferred income taxes
1,992
—
2,196
—
Stock-based compensation, net of amounts
capitalized
19,368
11,771
54,326
39,219
Non-cash lease expense
441
522
1,392
1,599
Accretion of discount on marketable
securities, net
(3,368
)
(1,683
)
(8,736
)
(3,477
)
Amortization of deferred contract
costs
1,785
1,548
6,544
6,278
Impairment of long-lived assets
—
—
2,304
—
Other
411
1,500
289
1,627
Changes in operating assets and
liabilities:
Accounts receivable
(12,986
)
(1,135
)
(36,464
)
8,509
Prepaid expenses and other assets
1,303
6,523
21,251
(3,981
)
Deferred contract costs
(5,853
)
(4,477
)
(9,069
)
(6,925
)
Accounts payable, accrued expenses and
other liabilities
9,418
10,429
3,872
2,366
Deferred revenue
(24,628
)
(24,823
)
(30,085
)
(38,576
)
Operating lease liabilities
(545
)
(586
)
(1,599
)
(1,168
)
Net cash provided by operating
activities
65,189
50,054
174,778
120,152
Cash flows from investing
activities
Purchases of property and equipment
—
(36
)
—
(147
)
Internal-use software development
costs
(1,771
)
(1,288
)
(5,018
)
(4,020
)
Purchases of marketable securities
(164,025
)
(101,112
)
(531,833
)
(281,338
)
Maturities of marketable securities
99,308
105,418
517,221
318,186
Sales of marketable securities
7,564
37,150
14,805
74,675
Net cash provided by (used in)
investing activities
(58,924
)
40,132
(4,825
)
107,356
Cash flows from financing
activities
Proceeds from issuance of common stock
upon exercise of stock options and common stock warrants
3,662
2,540
13,905
9,758
Proceeds from issuance of common stock in
connection with the employee stock purchase plan
—
—
1,422
1,494
Taxes paid related to net share settlement
of equity awards
(8,107
)
(1,248
)
(16,329
)
(5,332
)
Repurchase of common stock
(19,307
)
(76,792
)
(93,505
)
(262,976
)
Payment of contingent consideration
related to a business combination
—
—
(5,470
)
(5,390
)
Payment of excise taxes on share
repurchases
(1,491
)
—
(1,491
)
—
Net cash used in financing
activities
(25,243
)
(75,500
)
(101,468
)
(262,446
)
Net increase (decrease) in cash and cash
equivalents
(18,978
)
14,686
68,485
(34,938
)
Cash and cash equivalents, beginning of
period
184,248
108,403
96,785
158,027
Cash and cash equivalents, end of
period
$
165,270
$
123,089
$
165,270
$
123,089
Supplemental disclosures of cash flow
information
Cash paid for taxes, net of refunds
$
13,829
$
8,925
$
35,814
$
38,363
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with accounting
principles generally accepted in the United States (“GAAP”), the
Company uses the following non-GAAP measures of financial
performance:
- Non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income, non-GAAP net income, non-GAAP net income margin,
and non-GAAP basic and diluted net income per common share: We
exclude the effect of stock-based compensation expense,
amortization of acquired intangible assets, change in fair value of
contingent earn-out consideration liability, and restructuring and
impairment charges from non-GAAP gross profit, non-GAAP gross
margin and non-GAAP operating income. Non-GAAP net income and
non-GAAP net income margin are further adjusted for estimated
income tax on such adjustments. We calculate income taxes on the
adjustments by applying an estimated annual effective tax rate to
the adjustments. Non-GAAP basic and diluted net income per common
share is non-GAAP net income attributable to common stockholders
divided by the weighted average number of shares. For both basic
and diluted non-GAAP net income per share, the weighted average
shares we use in computing non-GAAP net income per share is equal
to our GAAP weighted average shares. Non-GAAP gross margin
represents non-GAAP gross profit as a percentage of revenue and
non-GAAP net income margin represents non-GAAP net income as a
percentage of revenue.
- Adjusted EBITDA and adjusted EBITDA margin: We define
adjusted EBITDA as net income before interest, income taxes,
depreciation, and amortization, and as further adjusted for
stock-based compensation expense, change in fair value of
contingent earn-out consideration liability, restructuring and
impairment charges, and other income, net. Net income margin
represents net income as a percentage of revenue and adjusted
EBITDA margin represents adjusted EBITDA as a percentage of
revenue.
- Free cash flow: We calculate free cash flow as cash flow
from operating activities less purchases of property and equipment
and internal-use software development costs.
We use these non-GAAP financial measures internally for
financial and operational decision-making purposes and as a means
to evaluate period-to-period comparisons. Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures and should be
read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. Our presentation of
non-GAAP financial measures may not be comparable to similar
measures used by other companies. We encourage investors to
carefully consider our results under GAAP, as well as our
supplemental non-GAAP information and the reconciliation between
these presentations, to more fully understand our business. Please
see the tables included at the end of this release for the
reconciliation of GAAP to non-GAAP results.
Key Business Metrics
- Net revenue retention rate: Net revenue retention rate
is calculated by taking the trailing 12-month (“TTM”)
subscription-based revenue from our customers that had revenue in
the prior TTM period and dividing that by the total
subscription-based revenue for the prior TTM period. For the
purposes of this calculation, subscription revenue excludes
subscriptions for individuals and small practices and other
non-recurring items. Our net revenue retention rate compares our
subscription revenue from the same set of customers across
comparable periods, and reflects customer renewals, expansion,
contraction, and churn. Our net revenue retention rate is directly
tied to our revenue growth rate and thus fluctuates as that growth
rate fluctuates.
- Customers with trailing 12-month subscription revenue
greater than $500,000: The number of customers with TTM
subscription revenue greater than $500,000 is a key indicator of
the scale of our business, and is calculated by counting the number
of customers that contributed more than $500,000 in subscription
revenue in the TTM period. Our customer count is subject to
adjustments for acquisitions, consolidations, spin-offs, and other
market activity, and we present our total customer count for
historical periods reflecting these adjustments.
Reconciliation of GAAP to Non-GAAP Financial Measures
The following tables reconcile the specific items excluded from
GAAP metrics in the calculation of non-GAAP metrics for the periods
shown below:
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
(unaudited)
(in thousands, except
percentages)
Net income
$
75,196
$
47,956
$
160,727
$
106,964
Adjusted to exclude the following:
Stock-based compensation
19,368
11,771
54,326
35,573
Depreciation and amortization
2,655
2,509
7,830
7,717
Provision for income taxes
14,644
15,076
44,453
30,285
Restructuring and impairment charges
—
—
2,304
7,936
Change in fair value of contingent
earn-out consideration liability
90
452
513
768
Other income, net
(9,915
)
(4,481
)
(26,060
)
(15,223
)
Adjusted EBITDA
$
102,038
$
73,283
$
244,093
$
174,020
Revenue
$
168,603
$
135,284
$
432,111
$
357,365
Net income margin
44.6
%
35.4
%
37.2
%
29.9
%
Adjusted EBITDA margin
60.5
%
54.2
%
56.5
%
48.7
%
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
(unaudited)
(in thousands)
Net cash provided by operating
activities
$
65,189
$
50,054
$
174,778
$
120,152
Purchases of property and equipment
—
(36
)
—
(147
)
Internal-use software development
costs
(1,771
)
(1,288
)
(5,018
)
(4,020
)
Free cash flow
$
63,418
$
48,730
$
169,760
$
115,985
Other cash flow components:
Net cash provided by (used in) investing
activities
$
(58,924
)
$
40,132
$
(4,825
)
$
107,356
Net cash used in financing activities
$
(25,243
)
$
(75,500
)
$
(101,468
)
$
(262,446
)
Three Months Ended December
31,
Nine Months Ended December
31,
2024
2023
2024
2023
(unaudited)
(in thousands, except per
share data and percentages)
GAAP cost of revenue
$
14,181
$
12,190
$
41,407
$
38,102
Adjusted to exclude the following:
Stock-based compensation
(2,818
)
(2,466
)
(8,373
)
(7,205
)
Amortization of acquired intangibles
—
—
—
(274
)
Non-GAAP cost of revenue
$
11,363
$
9,724
$
33,034
$
30,623
GAAP gross profit
$
154,422
$
123,094
$
390,704
$
319,263
Adjusted to exclude the following:
Stock-based compensation
2,818
2,466
8,373
7,205
Amortization of acquired intangibles
—
—
—
274
Non-GAAP gross profit
$
157,240
$
125,560
$
399,077
$
326,742
GAAP gross margin
91.6
%
91.0
%
90.4
%
89.3
%
Non-GAAP gross margin
93.3
%
92.8
%
92.4
%
91.4
%
GAAP research and development expense
$
22,421
$
19,946
$
68,235
$
61,835
Adjusted to exclude the following:
Stock-based compensation
(4,471
)
(3,080
)
(14,602
)
(8,874
)
Non-GAAP research and development
expense
$
17,950
$
16,866
$
53,633
$
52,961
GAAP sales and marketing expense
$
38,491
$
34,956
$
108,102
$
99,612
Adjusted to exclude the following:
Stock-based compensation
(6,487
)
(4,060
)
(19,881
)
(12,752
)
Amortization of acquired intangibles
(1,061
)
(1,061
)
(3,183
)
(3,183
)
Change in fair value of contingent
earn-out consideration liability
(90
)
(452
)
(513
)
(768
)
Non-GAAP sales and marketing expense
$
30,853
$
29,383
$
84,525
$
82,909
GAAP general and administrative
expense
$
13,585
$
9,641
$
32,943
$
27,854
Adjusted to exclude the following:
Stock-based compensation
(5,592
)
(2,165
)
(11,470
)
(6,742
)
Non-GAAP general and administrative
expense
$
7,993
$
7,476
$
21,473
$
21,112
GAAP operating expense
$
74,497
$
64,543
$
211,584
$
197,237
Adjusted to exclude the following:
Stock-based compensation
(16,550
)
(9,305
)
(45,953
)
(28,368
)
Amortization of acquired intangibles
(1,061
)
(1,061
)
(3,183
)
(3,183
)
Change in fair value of contingent
earn-out consideration liability
(90
)
(452
)
(513
)
(768
)
Restructuring and impairment charges
—
—
(2,304
)
(7,936
)
Non-GAAP operating expense
$
56,796
$
53,725
$
159,631
$
156,982
GAAP operating income
$
79,925
$
58,551
$
179,120
$
122,026
Adjusted to exclude the following:
Stock-based compensation
19,368
11,771
54,326
35,573
Amortization of acquired intangibles
1,061
1,061
3,183
3,457
Change in fair value of contingent
earn-out consideration liability
90
452
513
768
Restructuring and impairment charges
—
—
2,304
7,936
Non-GAAP operating income
$
100,444
$
71,835
$
239,446
$
169,760
GAAP net income
$
75,196
$
47,956
$
160,727
$
106,964
Adjusted to exclude the following:
Stock-based compensation
19,368
11,771
54,326
35,573
Amortization of acquired intangibles
1,061
1,061
3,183
3,457
Change in fair value of contingent
earn-out consideration liability
90
452
513
768
Restructuring and impairment charges
—
—
2,304
7,936
Income tax effect of non-GAAP adjustments
(1)
(4,309
)
(2,790
)
(12,668
)
(10,024
)
Non-GAAP net income
$
91,406
$
58,450
$
208,385
$
144,674
Non-GAAP net income margin
54.2
%
43.2
%
48.2
%
40.5
%
Weighted-average shares used in computing
net income per share attributable to Class A and Class B common
stockholders:
Basic
187,161
186,309
186,344
191,302
Diluted
202,233
200,463
200,625
207,265
Non-GAAP net income per share attributable
to Class A and Class B stockholders:
Basic
$
0.49
$
0.31
$
1.12
$
0.76
Diluted
$
0.45
$
0.29
$
1.04
$
0.70
(1) For the three and nine months ended December 31, 2024 and
2023, management used an estimated annual effective non-GAAP tax
rate of 21.0%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206576423/en/
Investor Relations Contact: Perry Gold
ir@doximity.com
Media Contact: Amanda Cox pr@doximity.com
Doximity (NYSE:DOCS)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
Doximity (NYSE:DOCS)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
