Q4 total revenues of $138.3 million, up 17% year-over-year Q4 operating cash flow of $98.5 million, up 54% year-over-year Q4 free cash flow of $97.0 million, up 56% year-over-year

Fiscal year 2025 total revenues of $570.4 million, up 20% year-over-year Fiscal year 2025 operating cash flow of $273.3 million, up 48% year-over-year Fiscal year 2025 free cash flow of $266.7 million, up 50% year-over-year

SAN FRANCISCO, May 15, 2025--(BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2025 fourth quarter and fiscal year ended March 31, 2025.

"We closed out fiscal 2025 on a high note, with record engagement, strong profits, and 20% annual revenue growth," said Jeff Tangney, co-founder and CEO of Doximity. "Our newsfeed, workflow, and AI tools all hit fresh highs in Q4, helping doctors save time and provide the best care for their patients."

Fiscal 2025 Fourth Quarter Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended March 31, 2024.

Revenue: Revenue of $138.3 million, versus $118.1 million, an increase of 17% year-over-year. Subscription revenue of $131.9 million, versus $112.7 million, an increase of 17% year-over-year.

Net income and non-GAAP net income: Net income of $62.5 million, versus $40.6 million, representing a margin of 45.2%, versus 34.4%. Non-GAAP net income of $77.7 million, versus $51.0 million, representing a margin of 56.2%, versus 43.2%.

Adjusted EBITDA: Adjusted EBITDA of $69.7 million, versus $56.4 million, an increase of 24% year-over-year, representing adjusted EBITDA margins of 50.4%, versus 47.8%.

Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.31, versus $0.20, while non-GAAP diluted net income per share was $0.38, versus $0.25.

Operating cash flow and free cash flow: Operating cash flow of $98.5 million, versus $63.9 million, an increase of 54% year-over-year, and free cash flow of $97.0 million, versus $62.3 million, an increase of 56% year-over-year.

Fiscal Year 2025 Financial Highlights

All comparisons, unless otherwise noted, are to the fiscal year ended March 31, 2024.

Revenue: Revenue of $570.4 million, versus $475.4 million, an increase of 20% year-over-year. Subscription revenue of $543.8 million, versus $450.1 million, an increase of 21% year-over-year.

Net income and non-GAAP net income: Net income of $223.2 million, versus $147.6 million, representing a margin of 39.1%, versus 31.0%. Non-GAAP net income of $286.1 million, versus $195.6 million, representing a margin of 50.2%, versus 41.2%.

Story Continues

Adjusted EBITDA: Adjusted EBITDA of $313.8 million, versus $230.5 million, an increase of 36% year-over-year, representing adjusted EBITDA margins of 55.0%, versus 48.5%.

Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $1.11, versus $0.72, while non-GAAP diluted net income per share was $1.42, versus $0.95.

Operating cash flow and free cash flow: Operating cash flow of $273.3 million, versus $184.1 million, an increase of 48% year-over-year, and free cash flow of $266.7 million, versus $178.3 million, an increase of 50% year-over-year.

Financial Outlook

Doximity is providing guidance for its fiscal first quarter ending June 30, 2025 as follows:

Revenue between $139 million and $140 million.

Adjusted EBITDA between $71 million and $72 million.

Doximity is providing guidance for its fiscal year ending March 31, 2026 as follows:

Revenue between $619 million and $631 million.

Adjusted EBITDA between $333 million and $345 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 the Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2024. Additional information will be provided in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025. 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.

CONSOLIDATED BALANCE SHEETS

(in thousands)  (unaudited)  March 31, 2025  March 31, 2024 Assets  Current assets:  Cash and cash equivalents $ 209,614   $ 96,785  Marketable securities  706,050    666,115  Accounts receivable, net  128,354    101,332  Prepaid expenses and other current assets  44,602    48,709  Total current assets  1,088,620    912,941  Property and equipment, net  13,656    12,318  Deferred income tax assets  60,014    45,068  Operating lease right-of-use assets  8,886    12,332  Intangible assets, net  23,072    27,317  Goodwill  67,940    67,940  Other assets  2,121    1,458  Total assets $ 1,264,309   $ 1,079,374  Liabilities and Stockholders’ Equity  Current liabilities:  Accounts payable $ 1,356   $ 2,253  Accrued expenses and other current liabilities  38,405    43,703  Deferred revenue, current  114,285    99,145  Operating lease liabilities, current  2,211    2,149  Total current liabilities  156,257    147,250  Deferred revenue, non-current  280    211  Operating lease liabilities, non-current  10,185    12,397  Contingent earn-out consideration liability, non-current  5,579    10,895  Other liabilities, non-current  9,383    7,224  Total liabilities  181,684    177,977  Stockholders' Equity  Preferred stock  —    —  Common stock  189    187  Additional paid-in capital  894,225    823,885  Accumulated other comprehensive income (loss)  1,323    (2,664 ) Retained earnings  186,888    79,989  Total stockholders' equity  1,082,625    901,397  Total liabilities and stockholders’ equity $ 1,264,309   $ 1,079,374

DOXIMITY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)  Three Months Ended

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 Revenue $ 138,288   $ 118,057   $ 570,399   $ 475,422  Cost of revenue(1)  14,467    12,567    55,874    50,669  Gross profit  123,821    105,490    514,525    424,753  Operating expenses(1):  Research and development  24,803    20,148    93,038    81,983  Sales and marketing  37,611    33,517    145,713    133,129  General and administrative  12,727    9,973    45,670    37,827  Restructuring and impairment charges  —    —    2,304    7,936  Total operating expenses  75,141    63,638    286,725    260,875  Income from operations  48,680    41,852    227,800    163,878  Other income, net  9,714    6,101    35,774    21,324  Income before income taxes  58,394    47,953    263,574    185,202  Provision for (benefit from) income taxes  (4,064 )   7,335    40,389    37,620  Net income $ 62,458   $ 40,618   $ 223,185   $ 147,582  Net income per share attributable to Class A and Class B common stockholders:  Basic $ 0.33   $ 0.22   $ 1.19   $ 0.78  Diluted $ 0.31   $ 0.20   $ 1.11   $ 0.72  Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:  Basic  188,362    186,756    186,841    190,172  Diluted  202,987    201,110    201,208    205,734

(1) Cost of revenue and operating expenses include stock-based compensation expense as follows (in thousands):  Three Months Ended

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 Cost of revenue $ 2,628   $ 2,274   $ 11,001   $ 9,479  Research and development  4,792    3,104    19,394    11,978  Sales and marketing  6,442    4,105    26,323    16,857  General and administrative  4,198    2,374    15,668    9,116  Restructuring  —    —    —    3,646  Total stock-based compensation expense $ 18,060   $ 11,857   $ 72,386   $ 51,076

DOXIMITY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)  (unaudited)  Three Months Ended

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 Cash flows from operating activities  Net income $ 62,458   $ 40,618   $ 223,185   $ 147,582  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization  2,829    2,548    10,659    10,265  Deferred income taxes  (13,788 )   (8,593 )   (11,592 )   (8,593 ) Stock-based compensation, net of amounts capitalized  18,060    11,857    72,386    51,076  Non-cash lease expense  446    475    1,838    2,074  Accretion of discount on marketable securities, net  (2,919 )   (1,761 )   (11,655 )   (5,238 ) Amortization of deferred contract costs  3,423    2,593    9,967    8,871  Impairment of long-lived assets  —    —    2,304    —  Other  (19 )   956    270    2,583  Changes in operating assets and liabilities:  Accounts receivable  9,258    (4,516 )   (27,206 )   3,993  Prepaid expenses and other assets  (18,489 )   (16,502 )   2,762    (20,483 ) Deferred contract costs  (2,982 )   (1,683 )   (12,051 )   (8,608 ) Accounts payable, accrued expenses and other liabilities  (4,535 )   5,966    (663 )   8,332  Deferred revenue  45,295    32,496    15,210    (6,080 ) Operating lease liabilities  (550 )   (510 )   (2,149 )   (1,678 ) Net cash provided by operating activities  98,487    63,944    273,265    184,096  Cash flows from investing activities  Purchases of property and equipment  —    —    —    (147 ) Internal-use software development costs  (1,507 )   (1,634 )   (6,525 )   (5,654 ) Purchases of marketable securities  (143,724 )   (191,529 )   (675,557 )   (472,867 ) Maturities of marketable securities  118,180    116,993    635,401    435,179  Sales of marketable securities  2,578    —    17,383    74,675  Net cash provided by (used in) investing activities  (24,473 )   (76,170 )   (29,298 )   31,186  Cash flows from financing activities  Proceeds from issuance of common stock upon exercise of stock options and common stock warrants  5,827    3,134    19,732    12,892  Proceeds from issuance of common stock in connection with the employee stock purchase plan  2,147    1,952    3,569    3,446  Taxes paid related to net share settlement of equity awards  (10,856 )   (1,424 )   (27,185 )   (6,756 ) Repurchase of common stock  (26,788 )   (17,740 )   (120,293 )   (280,716 ) Payment of contingent consideration related to a business combination  —    —    (5,470 )   (5,390 ) Payment of excise taxes on share repurchases  —    —    (1,491 )   —  Net cash used in financing activities  (29,670 )   (14,078 )   (131,138 )   (276,524 ) Net increase (decrease) in cash and cash equivalents  44,344    (26,304 )   112,829    (61,242 ) Cash and cash equivalents, beginning of period  165,270    123,089    96,785    158,027  Cash and cash equivalents, end of period $ 209,614   $ 96,785   $ 209,614   $ 96,785  Supplemental disclosures of cash flow information  Cash paid for taxes, net of refunds $ 19,840   $ 12,911   $ 55,654   $ 51,274

Non-GAAP Financial Measures

To supplement our 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 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

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 (unaudited) (in thousands, except percentages) Net income $ 62,458   $ 40,618   $ 223,185   $ 147,582  Adjusted to exclude the following:  Stock-based compensation  18,060    11,857    72,386    47,430  Depreciation and amortization  2,829    2,548    10,659    10,265  Provision for (benefit from) income taxes  (4,064 )   7,335    40,389    37,620  Restructuring and impairment charges  —    —    2,304    7,936  Change in fair value of contingent earn-out consideration liability  167    183    680    951  Other income, net  (9,714 )   (6,101 )   (35,774 )   (21,324 ) Adjusted EBITDA $ 69,736   $ 56,440   $ 313,829   $ 230,460   Revenue $ 138,288   $ 118,057   $ 570,399   $ 475,422  Net income margin  45.2 %   34.4 %   39.1 %   31.0 % Adjusted EBITDA margin  50.4 %   47.8 %   55.0 %   48.5 %

Three Months Ended

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 (unaudited) (in thousands) Net cash provided by operating activities $ 98,487   $ 63,944   $ 273,265   $ 184,096  Purchases of property and equipment  —    —    —    (147 ) Internal-use software development costs  (1,507 )   (1,634 )   (6,525 )   (5,654 ) Free cash flow $ 96,980   $ 62,310   $ 266,740   $ 178,295  Other cash flow components:  Net cash provided by (used in) investing activities $ (24,473 )  $ (76,170 )  $ (29,298 )  $ 31,186  Net cash used in financing activities $ (29,670 )  $ (14,078 )  $ (131,138 )  $ (276,524 )

Three Months Ended

March 31,  Fiscal Year Ended

March 31, 2025  2024  2025  2024 (unaudited) (in thousands, except per share data and percentages) GAAP cost of revenue $ 14,467   $ 12,567   $ 55,874   $ 50,669  Adjusted to exclude the following:  Stock-based compensation  (2,628 )   (2,274 )   (11,001 )   (9,479 ) Amortization of acquired intangibles  —    —    —    (274 ) Non-GAAP cost of revenue $ 11,839   $ 10,293   $ 44,873   $ 40,916   GAAP gross profit $ 123,821   $ 105,490   $ 514,525   $ 424,753  Adjusted to exclude the following:  Stock-based compensation  2,628    2,274    11,001    9,479  Amortization of acquired intangibles  —    —    —    274  Non-GAAP gross profit $ 126,449   $ 107,764   $ 525,526   $ 434,506   GAAP gross margin  89.5 %   89.4 %   90.2 %   89.3 % Non-GAAP gross margin  91.4 %   91.3 %   92.1 %   91.4 %  GAAP research and development expense $ 24,803   $ 20,148   $ 93,038   $ 81,983  Adjusted to exclude the following:  Stock-based compensation  (4,792 )   (3,104 )   (19,394 )   (11,978 ) Non-GAAP research and development expense $ 20,011   $ 17,044   $ 73,644   $ 70,005   GAAP sales and marketing expense $ 37,611   $ 33,517   $ 145,713   $ 133,129  Adjusted to exclude the following:  Stock-based compensation  (6,442 )   (4,105 )   (26,323 )   (16,857 ) Amortization of acquired intangibles  (1,061 )   (1,061 )   (4,244 )   (4,244 ) Change in fair value of contingent earn-out consideration liability  (167 )   (183 )   (680 )   (951 ) Non-GAAP sales and marketing expense $ 29,941   $ 28,168   $ 114,466   $ 111,077   GAAP general and administrative expense $ 12,727   $ 9,973   $ 45,670   $ 37,827  Adjusted to exclude the following:  Stock-based compensation  (4,198 )   (2,374 )   (15,668 )   (9,116 ) Non-GAAP general and administrative expense $ 8,529   $ 7,599   $ 30,002   $ 28,711   GAAP operating expense $ 75,141   $ 63,638   $ 286,725   $ 260,875  Adjusted to exclude the following:  Stock-based compensation  (15,432 )   (9,583 )   (61,385 )   (37,951 ) Amortization of acquired intangibles  (1,061 )   (1,061 )   (4,244 )   (4,244 ) Change in fair value of contingent earn-out consideration liability  (167 )   (183 )   (680 )   (951 ) Restructuring and impairment charges  —    —    (2,304 )   (7,936 ) Non-GAAP operating expense $ 58,481   $ 52,811   $ 218,112   $ 209,793   GAAP operating income $ 48,680   $ 41,852   $ 227,800   $ 163,878  Adjusted to exclude the following:  Stock-based compensation  18,060    11,857    72,386    47,430  Amortization of acquired intangibles  1,061    1,061    4,244    4,518  Change in fair value of contingent earn-out consideration liability  167    183    680    951  Restructuring and impairment charges  —    —    2,304    7,936  Non-GAAP operating income $ 67,968   $ 54,953   $ 307,414   $ 224,713   GAAP net income $ 62,458   $ 40,618   $ 223,185   $ 147,582  Adjusted to exclude the following:  Stock-based compensation  18,060    11,857    72,386    47,430  Amortization of acquired intangibles  1,061    1,061    4,244    4,518  Change in fair value of contingent earn-out consideration liability  167    183    680    951  Restructuring and impairment charges  —    —    2,304    7,936  Income tax effect of non-GAAP adjustments (1)  (4,050 )   (2,751 )   (16,719 )   (12,775 ) Non-GAAP net income $ 77,696   $ 50,968   $ 286,080   $ 195,642  Non-GAAP net income margin  56.2 %   43.2 %   50.2 %   41.2 %  Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:  Basic  188,362    186,756    186,841    190,172  Diluted  202,987    201,110    201,208    205,734   Non-GAAP net income per share attributable to Class A and Class B stockholders:  Basic $ 0.41   $ 0.27   $ 1.53   $ 1.03  Diluted $ 0.38   $ 0.25   $ 1.42   $ 0.95   (1) For the three months and fiscal years ended March 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%.

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