Doximity Soars Nearly 25% After Hours on Fiscal Q3 Earnings and Revenue Beats

Doximity (NYSE: DOCS), the leading digital platform for U.S. medical professionals, reported strong fiscal Q3 2025 earnings and revenue results on Thursday, February 6, 2025, sending its stock soaring nearly 25% in after-hours trading. The company's impressive performance was driven by robust revenue growth and expanding profitability margins, as well as accelerating AI adoption and a growing user base.

Doximity's total revenues for the quarter reached $168.6 million, up 25% year-over-year, while net income grew by 57% and adjusted EBITDA increased by 39% compared to the same period last year. The company's net income margin expanded to 44.6%, a remarkable 920 basis point improvement from the previous year. Doximity's strong financial performance was supported by its successful monetization strategy and efficient use of resources, with free cash flow conversion at 37.6% of revenue.



One of the key drivers behind Doximity's impressive results was the rapid adoption of AI tools by medical professionals. The company reported that its AI tools grew by 60% quarter-over-quarter, indicating a significant increase in usage. This acceleration in AI adoption, combined with the platform reaching over one million unique providers on its newsfeed, suggests strong product-market fit and expanding opportunities for monetization.

Doximity's expanding reach within the medical community also contributed to its strong performance. The platform has reached over 80% of U.S. physicians across all specialties and practice areas, creating a powerful moat and further enhancing its network effects. This extensive network enables Doximity to offer a comprehensive digital platform that caters to the unique needs of medical professionals, providing them with valuable tools and resources to enhance their productivity and patient care.

For the fiscal fourth quarter ending March 31, 2025, Doximity expects revenue between $132.5-133.5 million and adjusted EBITDA of $62.5-63.5 million. The company also updated its full-year guidance to revenue of $564.6-565.6 million and adjusted EBITDA of $306.6-307.6 million. These updated guidance figures imply continued strong execution and high adjusted EBITDA margins, significantly higher than most SaaS companies.

Doximity's impressive fiscal Q3 2025 results demonstrate the company's exceptional execution across both financial and operational metrics. Its strong revenue growth, expanding profitability margins, accelerating AI adoption, and growing user base position the platform well for sustained growth in the future. As Doximity continues to expand its reach within the medical community and offer valuable tools and resources to its users, it is well-positioned to maintain its competitive advantage and generate strong returns for investors.