Doximity, Inc. Q1 FY2026 earnings call

• Financials: Strong top-line growth with revenue beating guidance, solid bottom-line with adjusted EBITDA margin and growth. - Network Growth: All key user metrics hit records, with AI tools driving significant growth. - Doximity AI Scribe: Launched, HIPAA-compliant, free, with high user retention; helps reduce physicians' 'pajama time'. - Pathway Acquisition: Integrated into Doximity GPT, enhancing clinical reference capabilities, with physician AI suite taking shape including Scribe, GPT, and Pathway's Corpus.

Doximity reported $146 million in revenue for the first quarter of fiscal 2026, representing 15% year-on-year growth and a 4% beat from the high end of the guidance range. Adjusted EBITDA was $80 million with a 55% margin, growing 21% year-on-year, and free cash flow increased 52% year-on-year. Network growth: unique active users across quarterly, monthly, and daily bases hit fresh highs with double-digit year-on-year growth; news feed had over 1 million quarterly active prescribers with double-digit percent growth in articles read/tapped; 630,000 unique active prescribers used workflow tools; AI tools grew over 5x year-on-year. Doximity AI scribe launched, beta tested by over 10,000 physicians, PAs, and NPs, with 75% of users returning weekly. Pathway acquisition integrated into Doximity GPT, with thousands of physician beta testers using it.

For Q2 FY2026, revenue is expected to be in the range of $157 million to $158 million (15% growth midpoint) and adjusted EBITDA in the range of $87 million to $88 million (56% margin). For full FY2026, revenue is projected to be $628 million to $636 million (11% growth midpoint) and adjusted EBITDA $341 million to $349 million (55% margin). Increased outlook due to broad-based strength across the business, including pharma customer upsell season and client portal driving insights and bookings growth.

• Policy uncertainty affecting health system customers. - Cost pressures related to AI development and implementation, including personnel and infrastructure costs for Pathway acquisition. - Dependence on continued adoption and growth of new AI products like Scribe, Pathway, and DocsGPT to maintain growth and margins.

Q: Congrats on a strong quarter. So clearly, you're increasing the value you provide to physicians, and that's not just pajama time. But as you think about this next chapter that you referenced, how can you frame the opportunity for investors as they think about Scribe, Pathway, DocsGPT. What does that open up for you? Is it right to think about that in terms of engagement or hours on the platform? I know it's early days. But I think that's something that will be discussed a lot with investors.

A: Brian, this is Jeff. I'll take that question. And yes, we are happy to help doctors reduce their pajama time and improve their marriages too. A great moment hearing from that doctor using our Scribe product. And we're certainly very proud of our first 2 acts here as a company. The first act being our newsfeed and our LinkedIn style feature set, which has a record high over 1 million prescribers last quarter. And then our second act being our workflow tools, are scheduling, our fax, our telehealth, Doximity Dialer, which was 630,000 active prescribers last quarter. So I really think AI, these AI tools and AI suite could be our third act here. And that third act is answering the questions that doctors have when they're in front of patients. And it actually goes back to my roots, where I began in this whole business 20 years ago, which was following my Stanford physician roommates around and emptying out their lab coat pockets and seeing what kind of questions and what sort of books they carried around with them in the hospital. And as it turned out, the book that most doctors carried with them was Pharmacopoeia, which we then turned into a mobile app on the BlackBerry and then the iPhone and really, I think, disrupted the way doctors are able to carry a whole library in their pockets. Nowadays, if you were to ask doctors what they need help with answering questions, it really is the list of apps that are on their phone. Epocrates is my last company being one of the main players there. But we really see AI taking this to the next level. And so the Scribe product where I'm able to write notes from the visit, we'll be able to know what types of clinical questions I'm facing and what sort of notes I might need to write afterwards. And so the GPT, which helps doctors write, the Scribe which helps doctors take notes and then the Pathway acquisition, which answers their clinical questions and guidelines and drug dosage questions. All of that, I think, will work together seamlessly and provide an opportunity that I think is, in many ways, as big or perhaps even bigger than our first 2 acts, specifically because this gets to the core of search. This gets to the core of doctors answering questions in front of patients, which is a very valuable moment for the industry, as I learned in my last company.

Q: Congrats on a nice quarter. Maybe if I can just dig a little bit more into the upsell that you saw in the quarter. As you compare it to previous years, especially now with the portal in place and helping to guide the upsell, any qualitative differences in terms of the types of customers that you're engaging with, whether they're on the higher or lower side in terms of sizing? And how exactly is the portal a leading or lagging indicator, i.e., were they using the portal to drive the upsell or do they engage in the upsell and then that allows you to resell them on the portal or show them all the advancements? Just curious on some more color there would be great.

A: Yes. Mike, thanks for the question. I think one of the things, first and foremost, that's been pretty unique this year for upsell cycle is that all aspects of our business are performing well. So we have our SMB customers, as we mentioned, that are growing quickly, and I'll get to the portal in a minute there. We also have both our news and workflow modules getting very good traction, which is an uptick in some of our investments in news modules. And then our health system customers are outperforming our expectations as well. So I think what's unique about this upsell cycle is that the strength is so broad-based. And when it comes to the client portal and the way in which it's helping us, I think the insights and the recommendations that we've been able to share, we now have the lion's share of brands on the portal has really been a game changer as our customers think about maximizing their ROI. And so that's helped our SMB customers grow over 100% year-over-year in Q1. And in addition to the portal, the other thing I'll call out is, I think what's unique now is we have a diversified commercial product portfolio that's allowing our customers to maximize reach and frequency across our entire platform. So the workflow modules and the news feed modules have really been heavily leaned into. So across the board, it's been a really strong upsell season, which has been unique because I don't think we've seen this broad-based of strength. There's always been one thing that might be less strong. We haven't seen this broad base of strength in a while.