Q1 2026 Doximity Inc Earnings Call

Good day, everyone, and welcome to Doximity's first quarter 2026 conference call. At this time, I would like to hand the call over to Mr. Perry Gold. Please go ahead, sir.

Thank you operator. Hello and welcome to doximity, fiscal 2026. First quarter earnings call with me on the call today are Jeff Tangy, co-founder, and CEO of doximity and Anna Bryson CFO. A complete disclosure of our results can be found in our press release issued earlier today. As well, as in our related Form 8K, along with a copy of our prepared. Remarks. All available on our website at investors.to.

As a reminder, today's call is being recorded and a replay will be available on our website as part of our comments today, we will be making forward-looking statements. These statements are based on Management's, current views, expectations, and assumptions, and are subject to various risks, and uncertainties.

Actual results May differ materially. And we disclaim any obligation to update, any forward-looking statements or Outlook, please refer to the risk factors in our annual report on form 10K, any subsequent form 10 cues and our other reports and filings with the SEC that may be filed from time to time including our upcoming filing. Uniform 10q.

Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date. August 7th 2025.

Of note. It is that somebody's policy to neither reiterate nor adjust the financial guidance provided on today's call. Unless it is also done for public disclosure such as a press release or through the filing of a Form 8K.

Today, we will discuss certain non-debt metrics that we believe Aid, in the understanding of our financial results. A historical reconciliation to comparable. Gaap metrics can be found in today's earnings release.

Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be one-time in nature, and we may or may not provide updates on those metrics in the future.

I would now like to turn the call over to our co-founder and CEO. Jeff Tangy, Jeff.

First, our top line. We delivered $146 million in revenue for the first quarter of our fiscal 2026, which represents 15% year-on-year growth and a 4% beat from the high end of our guidance range.

Our bottom line was also strong in q1 with an adjusted ebitda margin of 55% or 800 million which was 11% above the high end of our guidance.

Our adjusted ebitda group 21%, year-on-year, recast flow, growth was Stronger still up 52% year on year.

In short, we had a better than expected q1. And a nice start to our upsell season led by our new products and portal. Our CFO Anna, will provide more detail on this in a minute.

Okay. Turning now to our Network growth and engagement our unique active users on a quarterly, monthly and daily basis. All hit fresh highs in q1 and all through double digit percentages year on year.

Our new speed also hit record highs, with over 1 million, quarterly active prescribers and double digit percent growth, in articles, read or tap.

In q1, a record 630,000 unique, active prescribers, use our workflow tools to provide better care for their patients. And once again, our AI tools, grew the fastest up more than 5x year on year.

We're proud to be both the new seed of medicine and the mobile medical office app.

Okay. Next up is our doximity, AI scribe, which launched last week over the past year, more than 10,000 Physicians Pas and NPS helped us beta. Test it and our AI wrote millions and millions of patient notes for them. As 1 Sur posted. It's a game changer. A HIPPA compliant, ambient note-taking tool. That's actually free not hundreds of dollars per month.

On average doctors, spend an hour and a half of so-called pajama time, every night typing in their notes. So a good scribe can be life-changing.

1 grateful, Primary Care. Doc told us scribe may have even saved her marriage.

We're proud to help.

And with over 75% of ascribed, users returning each. And every week, we are thrilled to add another very sticky tool to our workflow Suite.

The New England Journal of Medicine published an editorial last month, titled medical Ai, and clinician surveillance, the risk of becoming Quantified workers.

It warned, how it controlled, scribes, could effectively put a lawyer and administrator into every exam room?

thereby reducing clinician autonomy, and the empathy needed for a good medical visit

We agree. And so our scribe is fully controlled by the physician and fully private for their use. No 1 else is listening in.

Our next step is to integrate scribe directly into our popular telea Health tools, making it easier to do phone calls or virtual visits while taking notes All In 1 seamless interface.

Last but not least, we're pleased to announce the acquisition of Pathway.

A 6-person 7-year-old Montreal startup specializing in AI Clinical Reference.

Trained at McGill. John's Hopkins and Harvard Physicians. Make up half the team at pathway.

From a post-doc program at the prestigious Mila, AI Institute, they founded pathway 5 years before chat. Gbt even existed to help answer the ICU bedside questions. They faced every day

Together. They painstakingly built 1 of the best and largest medical AI data sets around spanning nearly every guideline drug journal and landmark trial. They call this their Corpus and what makes it powerful is. Its cross-linked structure that lets AI quickly get accurate answers for doctors.

It's much more than an llm it understands complex drug interactions and scores. The strength of medical evidence such as weighing a validated clinical trial, more than a case study.

The net result is industry-leading accuracy and speed.

This may Pathways AI models scored a record high 96% on the US. Medical licensing exam, outperforming their competitors with almost no marketing budget. Pathway has grown to hundreds of thousands of registered users worldwide with thousands, paying $300 per year for their premium version.

Over the past month. We've spent many, a late night working with the pathway team at our San Francisco offices. They're smart honest and hardworking, and we just couldn't like them more. We've already learned a lot from John Louie, Chris cutter Hub and Peter. And yes I'm calling them out here. Not just to thank them but also to help them get visas to move here.

The fruits of our collaboration are already on display in record time. Our engineering teams have integrated Pathways Corpus and finetuned AI into our free doximity GPD product.

Thousands of Physicians beta testers are already using it and liking its accuracy and speed.

I'm personally excited to be back working in Clinical Reference again it's where I began my career with a properties over 20 years ago.

Clinical Reference is a key part of physician workflow that once again seems right for Tech innovation.

Looking ahead, We Believe clinical AI is still in its early innings.

We recently, surveyed 1,800 us Physicians and more than half have yet to use any clinical AI.

But many are interested.

We're here to help.

We launched this activity GPT the first Hippa compliant physician AI. Just 3 months after chat GPT is released.

We've since learned a lot from our beta testers and physician advisory Summits about what doctors want. Most from AI,

So, our physician AI Suite is now taking shape.

Described takes your notes GPT writes, your letters Pathways Corpus, helps answer your question and they all work together in a 3, HEPA, compliance Suite that's private to each physician.

In some, we're excited to make AI our next app here at doximity.

Okay. As always, I'd like to end by thanking my doximity teammates who continue to work, incredibly hard to care for those who care for us.

And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance, Anna.

Thanks, Jeff. And thanks to everyone on the call today.

Fourth quarter revenue grew to $145.9 million, up 15% year-over-year and exceeding the high end of our guidance range.

The more, the prior quarters are existing customers. Continue to lead our growth.

We finish the quarter with a net revenue retention rate of 118% on a trailing 12-month basis.

For our top 20 customers net revenue retention was higher at 119%.

So our biggest most sophisticated customers remain our fastest growing.

We ended the quarter with 120 customers contributing at least 500,000 dollars each and subscription-based revenue on a trailing 12-month basis.

This is a roughly 17% increase from the 103 customers we had in this cohort a year ago. These customers accounted for 84% of our total revenue.

Turning to our profitability non-gaap growth margin in the first quarter was 91% versus 92% in the prior year period.

Adjusted, even the dock for the first quarter was $79.8 million and adjusted to be done. Margin was 55%.

compared to 65.9 million and a 52% margin in the prior year period.

We are proud to continue to run a very profitable business with margin expansions.

Now, turning to our balance sheet, cash flow, and an update on our share repurchase program.

We generated free cash flow in the first quarter of 60.1 million compared to 39.5 million. In the prior year period, an increase of 52% year-over-year.

We expect our free cash flow to be positively impacted by the new tax law, reversing the need to capitalize R&D.

We expect our cash tax rate, to drop to roughly 10, to 15%, starting this fiscal year.

We ended the quarter with 841 million of cash. Cash, equivalents and marketable securities.

During the first quarter, we repurchased 122.3 Million worth of shares at an average price of $33.99.

We believe repurchasing. Our shares is a valuable use of the incremental cash. We generate above what's needed to reinvest in the business.

As of June 30th, we have 302 million remaining in our existing repurchase program.

Now we'll provide additional details on our pathway acquisitions as well as an update on stock-based compensation.

Since we will offer our clinical reference tools free of charge, we expect no revenue contribution from Pathway this year.

The non-gaap expense impact will be modest. Estimated at just over 2 million in fiscal 2026 primarily related to personnel and infrastructure costs.

Additionally, we expect stock based compensation to increase to the high teams as a percentage of Revenue in fiscal points, 96 and 2027. And then Trend back down to the mid, teens starting in 2028.

This is primarily the result of our pathway acquisition as well as 1-time performance-based. Grants for our growing AI team.

That said, we expect solution from these new Awards to be more than offset by our share repurchases this year.

Now, moving on to our outlook for the second fiscal quarter of 2026, with spec Revenue in the range of 157, to 158 million. Representing 15% growth at the midpoint,

And we expect adjusted Ava on the range of 87 to 88 million representing a 56% adjusted on margins.

For the full fiscal year. We now expect Revenue in the range of 628 to 636 million representing, 11% growth at the midpoint

We now expect adjusted IBA in the range of $341 million to $349 million, representing a 55% adjusted eval margin.

Our increased Outlook is due to broad-based strength across our entire business.

Specific to our Pharma customers, we saw a promising start to the upsell season, which we believe is due to a couple of factors.

First, our expanded commercial product portfolio, continues to resonate with clients.

In q1. Both our workflow and new speed modules saw, strong growth

Second the client portal continues to provide deeper, insights into the program performance and drive favorable, purchasing decisions.

In particular, by leveraging the portal. Our agency partners have helped broaden our reach amongst SMB customers, contributing to bookings growth in this cohort of over 100% year-over-year in q1.

We are proud of our q1 performance and are encouraged that despite the continued policy and certainty. We have not yet seen any slowdown in our business.

That said we recognize there is still a lot of Runway left in the year and we will continue to take a measured approach to the revenue. We have yet to book which is reflected in our outlook for the back half of fiscal 2026.

Looking ahead. We are incredibly excited by how our recent investments in AI, particularly our pathway acquisition. And the launch of scribe will help Drive our long-term growth.

More importantly, we are excited to be building products that align with our mission of helping positions be more productive so that they can provide better care for their patients.

With that, I will turn it over to the operator for questions.

Thank you. And everyone, if you have a question today, please press star 1 on your telephone keypad, we ask that you limit yourselves to 1 question and 1 follow-up.

First question comes from Brian Peterson, Raymond James.

Thanks for taking the question and congrats to the strong quarter. Uh, so clearly, you're increasing the value, you provide to Physicians and that's not just pajama time. But but as you think about this next chapter that you referenced, how can you frame the opportunity for investors as they think about scribe Pathways stocks GPT like what is that open up for you? Is it alright 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 that we'll discuss a lot with investors.

Hey 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, you know, but a great moment hearing from that doctor using our, our scribe product and we're certainly very proud of our, our first 2 apps here as a company. The first acting our news feed and our LinkedIn stuff.

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. Pocket is my last company being 1 of the main players there. Uh but we really see AI taking this to the next level. And so uh describe product where I'm able to write notes from the visit will 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 uh, which helps doctors write describe which helps doctors take notes. And then the the pathway acquisition which enters 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 uh than our first 2 acts specifically. Because this gets to the core of of search. This gets to the core of uh, doctors.

Answering questions in front of patients, which is a very valuable moment for, um, for the industry as I learned in my last company.

I appreciate the call and Anna, maybe just to follow up for you on the guide for the second half of the year. I know that implies a deceleration is there anything that you're hearing from customers on bucket flush, or, or March ramps, for the next calendar year? Any help there. Thanks guys.

Yeah thanks for the question. Brian. And you know as we mentioned in the prepared remarks you know we had a very strong key 1 but q1 is our smallest bookings quarter of the year and we don't believe that in this environment we should necessarily take 1 quarters out performance and extrapolate that forward to the rest of the year so that's what's reflected in our back. Half guidance. What I will say is that we have not yet seen any slowdown in our business. Our business Still Remains incredibly strong in our clients. Budgets actually remain stronger than we initially expected. But simply given the fact that there's so much runway left in the year and there continues to be policy uncertainty. We're just taking a much more cautious approach to the dollars. We have not yet booked

Up. Next, we'll take a question from Michael Tierney, leering partners.

Hi, good afternoon and congrats on a nice quarter. Maybe if I can just dig a little bit more into the upsell uh that you saw on 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 the sizing. And, and, and how exactly, um, the portal of leading or lagging the indicator, I where they use in the portal to drive the upsell, or 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 what color? That would be great. Thanks,

Yeah, hey Mike, thanks for the question. I think 1 of the things first and foremost, that's been pretty unique. Uh, 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 our growing quickly and and I'll get to the portal in a minute there. Uh, we also have both our news and workflow modules getting very good traction. We actually saw an uptick in some of our, um, 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, it's helping us, I think, um, 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 SB customers grow over a 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 new speed modules have really been heavily linked into so across the board. It's been a a really strong upsell season, um, which has been the unique because I don't think we've seen, uh, this broad-based of strength. There's always been 1 thing. That might be less strong. Um, we haven't seen this broad-based strength in in a while.

Got it. Uh I'll leave it at that for now. Thanks.

The next question comes from Elizabeth Anderson ever core isi.

Um uh provider like continued provider um use of the products like more frequently if that makes sense.

Sure, Elizabeth. Um, yeah, it's a great question. As we said, in the prepared remarks...

Uh we've seen record highs here really across uh, all of our products. So let me start about some some of the things, some of the key drivers there. So first in our workflow tools, um our scheduler continues to grow and scheduling is something doctors really have to check every day. They need to know what time their shift starts. They need to know which cardiologist is on call. Uh, it's a very sticky, uh, product. And we're just pleased to see that continue to notch up a new client wins. Uh, every new schedule, we get is another set of 100 or 200 or 500 doctors who we know will be using our products every day, um, on our tea health. Uh, front, we continue to sign new clients there, our DM dialer package. Uh, I've never seen so many clients or over, uh, 200 Health Systems now roughly, 45% of all the US Physicians. Have a paid version of our doximity dialer, tella Health platform and that's also a very frequent. Use case that we're seeing doctors start to settle into the 1 de a week of sort of work from home and do their telea health and

Uh, good for us because we're the platform, uh, that often powers that um, the news feed does, sometimes feed off of that workflow use. Uh, but I would say that that team has continued to grow on its own and what it boils down to is ten years of first-party data, knowing what doctors are interested in what types of, uh, clinical news and just knowing the best, how to sort through all of the, uh, new Journal articles that are published every week every day and help help folks out with those, I will say AI has really helped that team a lot. We've used machine learning for a long time to algorithmically determine the best articles in the news feed for each doctor, but now we're using generative AI to go and actually rewrite uh, the headlines in a way that's more digestible and frankly more interesting uh, than the the typical medical journal style and format. And that's also led to I think continued growth there. Um, last note on Newsfeed you in the end I think we're all uh, as a society learning. How

to to

Choose our information diet. You know, we have information that can come in from every direction, and I think doctors are choosing to use us because we provide them a new feed that.

Helps them be a better physician in their area of sub specialty and practice. Without a lot of the noise, I think of of other, uh, social media sources

Um, so that's I hope gives you some sense in the drivers behind our, our core product growth.

Yeah, no, that's super helpful.

Was the AI products and how they're helping on sort of the revenue line and the product, uh, product Dimension. Can you talk a little bit about the opportunity on the Opex side? Um, as well, and sort of internal uses of AI as well. Thanks.

Yeah, thanks for the question, Elizabeth. It's actually 1 of my favorite things to talk about. So I'm glad you asked, uh, we're definitely leaning heavily into AI as a company, you know, for Physicians as Jeff was just talking about for our customers, and the form of our integrated multi module programs, and our client portal. And then for our own internal productivity. So you'll notice that, um, our headcount at doximity has made remained relatively flat over the last 2 years even while we've grown the business as, as quickly as we have. So the fact that we are leaning into AI across our internal teams, whether it's sales and marketing, you know, in GNA, we use it for things like contract reviews R&D uses it to supercharge programming. I think we're still in the early days of what that means for long term margins. Um, we haven't yet had

Enough time to assess how that might impact long-term margins. That said, I think it only contributes to a more efficient business model. As we're guiding to a year of 55% growth, despite all of our investments in AI, I think that just speaks to how these AI tools that we use internally have really boosted our productivity.

Your next question is from Ryan Daniels, from William Blair.

Yeah, congrats on the quarter and the deal. Um, and thanks for taking the question. If we think about the new AI offering really compelling, if we think of proximity GPT the AI scribe and Pathways clinical tools. I'm curious if eventually you see that turning more into a revenue generation opportunity as a standalone product similar to how you free uh launched the dialer and then went to an Enterprise model and have started to generate sales from that.

Yeah thanks Ryan. This is Jeff. Um good question. We do see this being a lot like

There. We do see these being a lot like our dialer product, which

Um, did begin as a free product, but then became an Enterprise product. And of course, uh, it's become a successful Revenue stream, uh, in the note of its own right. Uh, we certainly see opportunities and facts have already been approached by a couple of our dialer. Clients about that for scribe. Uh, and we are, you know, in discussions. Uh, we're certainly pleased that pathway has shown that they've gotten thousands of doctors to pay $300 per year for their clinical products.

Uh, and we view that as another long-term opportunity for, uh, Enterprise direct subscription Revenue. So um

The short answer is I think you can expect this to approach us like we did with dialer, which took a couple years for us uh to go from uh, initial free product to then the more Enterprise premium versions.

Okay. Perfect. And then maybe a follow-up for Anna. I don't know if I missed this earlier, but last quarter you gave us the percentage of revenue for the year, you have under contract. I think it was around 70%, I'd love to get an update there, it sounds like that might have moved up given the uh, strong and Broad upsells that you're seeing, which is great. Thank you.

Yeah, thanks for the question Ryan. And as you mentioned you know we started the year with just under 70% of our subscription-based Revenue under contract naturally. Today we're quite a bit higher. We're not going to give that exact number every quarter. Uh but what I will say is the remainder of the year is primarily dependent on renewals given our guidance continues to take a cautious approach to the policy and certainty that our customers face today and the revenue we have yet to book. So we feel very confident in where we are as far as a percent under contract perspective today.

Up next, we'll hear from Alan Lutz from Bank of America.

And thanks for taking the questions. Do you have a question for you? Um, I know it's early, but I would love to get a sense of, uh, the super users of docs gbt and maybe even describe the the, the workflow tools, the AI tools. How long are some of these doctors on the platform using these workflow tools because I, I would think that it's a lot different than the newsfeed, which might be more episodic. Whereas the workflow tools and maybe docs, gbt is more structured into the workflow of of their life as a physician, would love to get a sense from you. What, what is that relative time on the platform or expectations for some of these? Super users of Doc, TBT versus the news feed as we try to think about what the the revenue generation opportunities could be for these over a longer period of time. Thank you.

Yes, no. Thanks for the question. So, as we said our prepared remarks over 75% of our scribe, users use us every week. So again, we're pleased to add another very sticky, uh, workflow product in our scribe product. Um, it's interesting, you mentioned, you know, times of day, uh, our products seem to, uh,

Fall into really all times of day. By the time you put them together. So I'll say the news feed is before work and after work and uh in a sad statement on Dr. Social lives uh you know in the evenings on weekends it's a good time to catch up and read the latest medical journals and stay up to date. Um, our tele Health Products of course are you know, during the 9 to 5 uh, and tend to be again clustered around a given day of the week. Depending on that, that doctor's uh, work schedule. Uh,

Things flow out, uh, the scheduling product really is an everyday 9 to 5, uh, the Scribe product and every day, 9 to 5, uh, the GPT product, and every day, 9 to 5, so you put it all together. You know, we're an app that gets opened by our doctors and first thing in the morning to catch up on the news all during the day to do their their work and then in the evenings and weekends again to stay up to date on the latest clinical advancements.

Thank you, appreciate that. And then 1 for Anna on on pathway uh just want to verify that that the Opex from that deal is in the updated guidance. And then is there any way to frame kind of what the uh the the costs are uh that are going to flow through the p&l for for that business over the remainder of the year? Thanks.

The next question is from David Roman Goldman Sachs.

Hey, thanks. Uh, this is Jamie pson for David. Um, I I I wanted to go back to 1 of the comments made in the script just around agency, bookings you. You said, uh, you know, this was opening up the small and medium-sized

Business opportunity for you that had grown 100% in the quarter. Can you just give us some context on, you know what? Whatever stats are most relevant. But you know what, percent of the agency market, you're engaging with today, where that can go over time, just to give us a sense of of the opportunity that you see over the next 1 to 2 years.

Hey, Jamie it's uh Terry. I can actually help with this 1. Um, so on the agency partners in short, that the program is going really well. Um, we're now at more than a dozen agency portal Partners. So I signed on and they've already brought us more than 5 million dollars in the business since the start of the program. Uh, so we hope to continue to grow the program and so far. It's it's, it's gone very well for us.

Um, and then just a question on guidance and and specifically Opex priorities for the year. Uh, so your your updated guidance implies about 11 and a half percent, uh, Revenue growth for the year and about 10% growth. So really, no operating leverage. Uh, you you, you obviously delivered very strong operating leverage in the first quarter, I

I know there's the the, uh, 2 million from pathway embedded in in numbers, but it really doesn't explain the lack of Leverage in the back half. So Are there specific Investments? Uh, you know, across the p&l you're contemplating for the balance of the year. Uh, just any, any color on, you know, how we should think about. Um, uh, you know, those p&l Investments. Thank you.

Yeah, thanks for the question and um, this is something we we talked a little bit about last quarter as well. When we were giving our our initial guidance, uh, we are definitely investing in AI this year. This is our our year of AI Investments. Uh, so there's going to be some incremental Investments related to power in our AI solutions for our physicians. So that's costs that relate to developing functionality, content licensing, increased usage, Etc. Uh so that is what you're seeing as far as the expense growth. Um, all of our AI Investments are tracking to what we initially believed to start the year and we feel as though the fact that we can invest as we are in such a game changer of a solution for us, that really is going to become a third act, and still maintain a 55% adjusted. Eva Dome margin really just speaks to the inherent efficiency of our business.

Brian McDonald from nem. Has the next question.

Hi, thanks for taking my questions and apologize if it's been asked already but, um, I'm a pathway acquisition, just curious how you're planning to sort of integrate that into, uh, into doximity will do you expect it to be sort of an extension of the core news feed? Um, and then, um, second, you know, with the sort of strong success we've seen out of open evidence and sort of broad usage from doctors or rapid growth there. How much sort of brand awareness? Do you feel like you have to build with the pathway product or maybe rebuild uh within Physicians uh moving forward? Thanks.

Hey Hey Ron, this is Jeff. I'll take that. Uh so yeah, we're excited about the integration success. We've had with the pathway acquisition already as we mentioned into our uh prepared remarks. Uh the product has already been largely integrated. Um, the team's been working, super hard on it. I think we've got, you know, 6 months worth of integration work done in just a matter of a few weeks with with the great team that we've brought on there. We've got about 50 of our team Engineers focused on on the AI and sort of a startup inside a startup and bringing us a lot of growth and energy there. Um, we are going to make it 3, uh, so we're not going to charge the $300 per year that path we have been charging. Uh, we are putting it inside our Doc in the GPT product which already has a a decent user base. As we've mentioned, it had 5X.

Growth a year on Year and that just provides 1 box for doctors to go ask whatever type of question they have be it clinical or administrative and we see that the AI actually does a very good job of differentiating. Which question type is there and and giving the appropriate type response uh, for Physicians on it. Uh, we think we bought the best company in the medical AI search space. Uh We've looked high and low and um it's shown in their 96% best-in-class. Uh you know 5% of the others on the USMLE. Um and

I haven't gone through and codified summarized thousands of randomly controlled Landmark trials, thousands of clinical guidelines, thousands of drugs and doses at a discrete level. This data set that is built um, for AI, uh, to be fast and accurate. We think, uh, in the long term will be the, the winner here and we're excited to get up every day and deliver that for our doctors, we think

um,

and we think we can build this to be the leader in the space.

Appreciate the call.

The next question is from Stephen Val from Mizzou host security.

Oh, great. Thanks. Uh, good afternoon. Thanks for taking the question.

So, you know, we have recently did some uh survey work with Physicians that use vaxxinity just to to ask them, you know, what is the number 1 feature? They use most on the app and while professional physician networking was still the most widely used feature. You know, at least in our survey, I was surprised just off fairly evenly spread the results were uh for the number 1 spot on feature. Usually use usage across categories like you know position networking versus tell the health dialer versus news, feed AI running tool Etc. So really the question is, I guess, I'm curious how that compares to your own internal views as far as what's the most widely used. And also do you think any 1 of the newer features will eventually become number 1? Most used feature going forward just from your own perspective

Thanks.

Uh thanks Stephen, this is Jeff. Um, yeah, your survey matches largely with our own internal data on the topic. Um, you know, we divide up our teams uh, by product into what we call News Network workflow. Uh, they each have their own VP and each of those teams are relatively evenly balanced. When you look at, uh, their numbers and um, you know, their their resources on our end. So, uh, we do think it's a diversified platform. And as we see new competitors and others come in, um, you know, we we see them bringing new features, new points Solutions, but again not having the ability to provide that across, uh, an identity graph and a clinical graph and 10 years of, knowing what um, what each doctor about treats the most and what what is most interesting to them? So, um, yeah, we're, we're pleased to have a diversified platform. That is so evenly balanced as your survey indicates.

Okay, that's helpful. Thanks.

Scott showing house from KeyBank is up next.

Hey team, thanks for asking my question. Um,

You know, if we take a step back, even from a year ago, but for all the, you know, several years ago, it seems like you guys have a lot more visibility into your business, which must help you as a CFO. Can you talk about the steps that you currently put in place? Whether it be pulling contracts for January 1st start dates, more broadly, and rolling out the client portal.

And maybe what steps you can take further for increased visibility. Thanks.

Yeah, thanks for the question, Scott. And I'm

Correct.

Ability. Then uh, we've ever had here at doximity now, I'll say a part of that is due to the stability of our clients budgets, at the end of the day. Our growth rate is always going to be underpinned by how our clients are growing. So we've seen a lot of stability there over the last year or 2, which which is certainly helped. Um, but we've made great strides ourselves. So you mentioned our um, January starts, you know, as we've pushed more customers towards these multi module integrated programs. Uh, we're really excited to see the fact that they're signing up for longer deals. They're starting right away and it's providing us a lot more visibility. Um, as we think out the next 12 months, uh, additionally with our client portal, being able to see what our clients are doing. In the portal has actually helped us with our visibility in the upsell cycle and so I think we're just going to continue to to get a little smarter there and then also continue to see more clients lean into these integrated programs that I just mentioned. Um we definitely Believe The Upfront this year will continue to be led by these integrated offerings so more customers

Was on the he still was programs definitely better for a visibility so we're really excited about what we're seeing there.

Thanks.

Next up is Alexi Google log from JP Morgan.

you mentioned that your out systems are performing, expectations, can you speak to the recovery, you're seeing in the provider Solutions business and just any additional color on its current state

The board. So we've had a really good traction amongst all 3 of our Solutions, our marketing, our hiring, and our Enterprise solution. Um, 1 of The Brighter spots is our Enterprise offering which grows really nicely for us lately. We've signed up 17 of the top 20 Health Systems. And uh we've seen pretty strong paid adoption recently as well of our on call Scheduling tool. Um, so we're really pleased by what we're seeing with health health systems. Uh, I will just caution and say,

When it comes to the policy uncertainty there definitely you know, right in it. So while we remain cautiously optimistic that that our health system business will continue to to do well um we're not assuming that in our guidance because we are aware of the policy uncertainty they're seeing

The next question today comes from Brian, Tangled Jeffries.

Hey, good afternoon, congrats on the quarter. Um, maybe just curious. If you can share with us, you know, what you're seeing in the Curative segment. Um, just anything you can share with us on Trends there. Thanks.

Yeah thanks for the question Brian. Um you can see this actually Broken Out In other Revenue in our our financials and our 10 Q. Uh but we have a strong quarter um so Curative which is our full service position Staffing firm and makes up the bulk of that uh other revenue and it grew roughly 20% year-over-year in q1. Um, so we're definitely seeing some nice traction there. We're excited by how AI can um, further enhance? Recruiting? And I'm glad you asked about it because it's just, it's a good, uh, moment.

To take a reminder and say the locals industry itself, is a multi-billion dollar industry and and growing quite quickly. Uh, so we definitely believe this is a really strong long-term opportunity for doximity.

Awesome. Thank you.

Craig hit inbox from Morgan. Stanley has the next question.

Thanks. Uh, I have a question on, just the news feed, understanding that video modules, continue to gain momentum and and increasingly important growth driver. Just looking for how the news feed is performing and any any new developments there to call out

Sure.

I was just going to say, I appreciate you calling out the video. Uh, is

Uh, is an important piece of our growth there. Um, and uh,

Certainly clients, I think, historically, pharmaceutical companies have not had a lot of video assets that were highly engaging and AI is helping them and their their agency partners create, uh, good shorter, uh, video segments that, you know, highlight a mechanism of action or some other, uh, scientific charts. And so we've seen those perform better in our Newsfeed over time. But I mean, the main stat is what we shared in the prepared remarks, which is, we had a record, high number of quarterly, active prescribers in our Newsfeed, this last quarter. And uh, also we've seen, you know, strong double digit growth percent growth in our number of Articles tapped or

Got it and then just as a follow-up more broadly, just on on the macro, kind of the 5 to 7% industry growth. You know, last quarter kind of pointed towards the low end given uncertainty, just kind of curious 90 days later what you're seeing in, in, in the market. Um, you know, from from customers and does that change any view in terms of, uh, maybe the shape of the year or not?

Yeah, hey Craig, thanks for the question. Uh, as we sit here today as as our results obviously show and and our guidance for Q2 shows things are definitely looking better than we had initially expected. Uh, but as I mentioned, in the prepared remarks, there's still a ton of runaway left in the year and the policy uncertainty has not gone away. Uh it hasn't hasn't changed uh much in the last 90 days or so here it kind of remains as an overhang. So while we're very encouraged that we have seen this marginal improvement over the last 90 days

Uh, you know, our back, half guidance, still is going to take that measured approach to our clients budgets. Just once again, given the fact that, um, there remains this this policy uncertainty. So likely, if we kind of think about that 5 to 10% forecast range, it's definitely come up a little bit. You can see that in our guidance, from what we initially expected, but we still think that's the right range to think about from a budget growth perspective.

Your next question is from Jessica cassan Piper Sandler.

Time optimization. Thanks.

Justice and Jeff. I'll I'll answer that. Um, so the way our flow works, today for 10,000 beta testers has been to, uh, use their phone or their, their laptop, uh, either 1. Uh, as the microphone, uh, to, uh, listen in on the visit and then write the notes at the end of the visit, the doctor can choose any time during the visit. What type of note, or what type of template they want to choose? And this is where I think we've taken a slightly more open-source approach, letting doctors actually uh work on their own instructions and templates. Basically train their own scribe in the way that they prefer for their note types. Uh, that's probably been the key area of of technology. I think we've developed is, we've made it easier for doctors to make sure the note is written in the way that they individually prefer given their sub specialty, and, and their practice. And we've made it easy for them. Then to share the that note template in style with others in their practice, which allows the more tech-savvy doctors I think to, to help others in their practice. Um, most of our 10,000 beta

Testers actually came in not from us reaching out to them uh but from them asking for others to come in, so it's it's Word of Mouth. Growth has been has been strong in terms of how they get into the EHR. It's a cut paste. Um and you know that isn't um that is 1 step to add to a process. But interestingly, when we talked to doctors about this, there's already so many steps you know, 19 clicks to order.

Of Tylenol in a lot of these systems, that one cut and paste really isn't that much to add. That said, we are in active discussions, and we will certainly work on EHR integrations to make that one copy paste also be automated in the future.

Got it. And then that's, that's really helpful on scribes. So with workflow, you obviously have the super synergistic hypo compliant hcp oriented kind of 1 Stop Shop on use case, do you envision the workflow Suite on an iPhone kind of supporting providers in their digital V visits and ambulatory settings? Or does the iPhone play? Just this big a role in the acute care setting. Um or we ultimately shooting for for each our integration just would love to understand kind of where you imagine. Um you know, uh workflow really, really um capturing the market, in the next 3 to 5 years

Thanks. Yes. You know, uh, you're right that the iPhone is a key piece of technology for doctors, right? It's become their peripheral brain, if that's what we called it back at Epocrates, and

That, that was voice 12 years ago to become a bigger and bigger part of their overall practice. And I think, especially as they train their scribes to write notes the way they want and use it to just ask natural language questions, which

Will deliver up, you know, AI, uh, driven answers to, uh, it will continue to be a core part of being a physician. Um, I I just, uh, say, in terms of the the

Long-term 5 year sort of vision. You can see it today in our iPhone app. If you go uh and look at the widgets that we offer, it's just this little 4 square of widgets where doctors are choosing to not just have 1 app icon on their home screen but 4 for us. The first is their Newsfeed uh, time to catch up. The second is their scribe, our time to record a visit. Uh, the third is the uh, dialer need to call the patient. Start to tell the health visit and the fourth is uh our our sgpt, you know, the ask a clinical question and I do think that will be a synergistic.

Suite for us as doctors again, use this to do their daily workflow.

My next question comes from Stan Bearing Stain with Wells Fargo Securities.

Uh hi. Thanks for that. Thank you for taking my questions. Um first on the AI scribe so it it's giving away for free. Presumably, there are costs to deliver. The swipe service, I'm just wondering if this becomes heavily utilized, are there any pressures to gross margins that could emerge in their High utilization?

Hi Stan, this is Jeff. Yeah, I glad you asked that question because, you know, 1 of the limiting factors, I think we had a year or 2 ago was scribe, was the cost of medical grade transcription and medical grade Hippa grade, uh, llm use thankfully for us. Those costs have come down dramatically. It's been a lot of competition in the market and our expectation is they'll continue to come down. So we're in the pennies per visit, uh, camp on this now, which is similar to where we're at with our dialer product and so we don't see. Um, we don't see the the cost there being a barrier, given our business model.

Into the portal. Then, widely adopted a lot of the brands already on there. Um, the portal allows for faster Roi measurement. You have more modulation and it's at the same, you can have, are you seeing any signs that Pharma is actually using the portal to adjust their budgets, like intra quarter more frequently, or have budgets really been?

Steady overall, not impacted by that capability.

Hey Sam. Uh, it's hairy. I I'll take that 1. Um, yeah, as you said to the line, share our final brands are now on the portal. It's actually pretty impressive. Given the denominator, the total number from the brands through a lot last year, driven by SMB. Um so so it's really um, the sales team works with the clients and it's really our recommendations tab that allows our sales team, the same with the proposed new deals upsell to respond to pricing requests. Um so not only is this increasing your conversion rates but it's leading to larger sales in a more efficient sales motion uh and Our Brands continue to benefit from our frequent Roi updates and our audience insights

Right. Thanks so much.

The next question today is from David Larsen, BTIG.

Hey, uh, congratulations on the great quarter. Just how many clients are now using, uh, the self-service portal? Is it, um, like over 80%?

Uh, I can take that. 1. David. Yeah, it's the majority.

Okay. And then just in terms of like the macro um and the risk of tariffs, um I think what I heard was your guy does does include the risk of some headwinds. So if things come in better than expected, as you progress through the year, there could be some upside. I would imagine

Yeah, I think that's a fair way to think about it, David. I think, um, what...

Interesting right now is uh, especially in the pharmacist pace is. There's a lot being discussed in the way of policy changes, uh, that could be headwinds to our business or ones that could be Tailwind store business such as the, the potential DTC band. So I I definitely think, um, if we end up seeing stable, budgets through this period, we we could see some upside to our business and even if I just want to make a a long-term comment here, even if there are some some policy changes that disrupt Pharma uh we have to remember that Pharma companies in general spend tens of billions of dollars on sales and marketing. And if anything we believe that in a more efficiency focused environment, while there could be some near-term disruption, our customers will lean into spending dollars on the highest Roi channels um such as doximity. So we feel like regardless of

What happens with policy? We are very, very well positioned for the long term, just given our industry-leading ROI.

The next question today comes from Jalen dressing from True securities.

Hi, this is Jenny Alfred Gjendra. Thanks for taking my question. I was curious if you are seeing any differences in spending or initiatives across customers. I know a lot of large pharma companies are facing upcoming exclusivity expirations, and I’m just wondering if you're seeing that influence how they allocate their marketing budgets or try to maximize patient reach and engagement in the final years before that exclusivity.

For that dynamic, created till when for Doximity.

Yeah, thanks for the the question Jenny. I think, um, back to kind of some of the stuff we talked about earlier. What's what's really unique, uh, with what we're seeing with our clients right now is how broad-based and strength is. So we're doing very well at top 20 Pharma, we're doing very well with mid-tier Pharma and then doing very well with, with the longtail smv as we think about, um, where where drugs might be in their life cycle, uh, a lot of drugs, uh, continue to spend very, very evenly towards kind of those end stages on doximity. But what's more interesting I think, is the drugs that are coming to Market. And a lot of these drugs are coming to Market with a digital first strategy, which is something we we just hadn't seen before. So, uh, they've chosen to spend more on digital than they are on, on their sales force.

And that's a huge benefit for doximity. So as more and more of these drugs launch, we're capturing a larger share of their budget very quickly and that's allowing us to scale. So um, I think we're in a really good position for the Tailwind perspective, as we continue to see innovation in the farmer market and and more Brands um, come to Market

Got it and just a quick follow up any players across the broader pharma spaces and mid sized companies, there's room to be more stable in terms of that industry, they're making just from your vantage point are you seeing similar trends driving the momentum that you saw on the F&B space with cordis.

Yes, thanks for the question their journey.

Absolutely seen.

Better better stability in SMB than we've seen since I think pre COVID-19.

We saw a little bit of a pullback post COVID-19, but mid tier and F&B have I'll say kind of come roaring back here over the past six to nine months for us. So that's been a really really nice tailwind for our business and I think it's the first time back to.

What I had mentioned earlier, it's the first time since Covid that we've seen every single aspect of our pharma business firing on all cylinders. So we're really excited with what we're seeing.

Hey, Jamie it's Terry I'll, just hop in and that we think these smbs are just much more keenly aware of how critical digital has become to pharma commercialization efforts, even if they don't have a massive budget and we think hopefully that's a development that we will have stability going forward.

Everyone. At this time there are no further questions I would like to hand back to Geoffrey King me for any additional or closing remarks.

Well. Thank you everyone for joining our Q1 call I just wanted to end again by thanking our entire doximity team for continuing to work so incredibly hard to take care of those who take care of us. Thank you everybody.

And again, everyone that does conclude today's conference we would like to thank you all for your participation today you may now disconnect.

Yeah.

Hum.

Yeah.