Doximity, a leading digital health platform, recently held its second-quarter earnings call for fiscal 2025, showcasing a robust financial performance and a strategic focus on leveraging technology to revolutionize healthcare. The call, led by Perry Gold, CEO, Jeff Tangney, Co-Founder and CEO, Anna Bryson, CFO, and Nate Gross, Co-Founder and CSO, highlighted several key themes, including financial results, network growth, and client portal initiatives.
Financial Performance
Doximity reported a 20% year-on-year growth in revenue to $137 million, outperforming the high end of its guidance range. The company's bottom line was equally impressive, with a record adjusted EBITDA margin of 56%, marking a 41% year-on-year growth. This strong performance was attributed to the continued growth with top clients, particularly the top 20, who expanded at a rate of 24% on a trailing 12-month basis. These clients, which include major pharma companies, are significant indicators of Doximity's value proposition and market reach.
Network Growth and Client Portal
Doximity's network growth and engagement also stood out, with a record engagement quarter for the company. Active users across various metrics, including weekly, monthly, and daily, all showed double-digit year-over-year increases. The news feed, in particular, set a new record for articles read, underscoring Doximity's ability to deliver personalized content to its over 2 million members. The company's workflow tools, including telehealth, fax, scheduling, and AI assistance, also saw significant growth, with over 600,000 unique active prescribers utilizing these services. The AI tools, which grew the fastest, are a testament to Doximity's commitment to leveraging technology to improve healthcare delivery.
Client Portal and Strategic Partnerships
A highlight of the call was the launch and reception of Doximity's client portal, which is now open to over 40% of its pharma brand clients. The portal, which allows for easier upsells and identification of nurse practitioners (NPs) as a high-growth audience, has already shown promising results. The company's partnership with agencies has also been instrumental in driving sales, with these agencies acting as key allies in introducing Doximity to new SMB clients. The plan is to roll out the client portal to all pharma clients starting early next year, with a focus on agency partnerships over SMB self-service.
Looking Ahead
The earnings call also provided insights into Doximity's outlook for the future. The company expects revenue to grow by 13% in the third fiscal quarter, with adjusted EBITDA margins remaining strong. For the full fiscal year, revenue is projected to reach $535 million, representing a 13% increase at the midpoint. These projections are driven by the continued success of Doximity's product offerings, particularly the client portal and workflow tools, and the company's ability to monetize these services effectively.
Conclusion
Doximity's strong financial performance and strategic initiatives underscore its position as a leader in the digital healthcare sector. The company's focus on network growth, client portal, and strategic partnerships is a testament to its commitment to leveraging technology to improve healthcare delivery and patient outcomes. As Doximity continues to innovate and expand, it is poised to make a significant impact on the healthcare landscape.