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Doximity Announces Fiscal 2025 Third Quarter Financial Results
Total revenues of $168.6 million, up 25% year-over-year
Net income growth of 57% and adjusted EBITDA growth of 39% year-over-year

SAN FRANCISCO, Calif., February 6, 2025 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2025 third quarter ended December 31, 2024.
“We’re proud to deliver another quarter of record engagement in Q3, with over 610,000 unique providers using our clinical workflow tools,” said Jeff Tangney, co-founder and CEO of Doximity. “Our AI tools grew the fastest last quarter, up 60% over the prior quarter, while our newsfeed surpassed more than one million unique providers.”
Fiscal 2025 Third Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended December 31, 2023.
•Revenue: Revenue of $168.6 million, versus $135.3 million, an increase of 25% year-over-year.
•Net income and non-GAAP net income: Net income of $75.2 million, versus $48.0 million, representing a margin of 44.6%, versus 35.4%. Non-GAAP net income of $91.4 million, versus $58.5 million, representing a margin of 54.2%, versus 43.2%.
•Adjusted EBITDA: Adjusted EBITDA of $102.0 million, versus $73.3 million, an increase of 39% year-over-year, representing adjusted EBITDA margins of 60.5%, versus 54.2%.
•Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.37, versus $0.24, while non-GAAP diluted net income per share was $0.45, versus $0.29.
•Operating cash flow and free cash flow: Operating cash flow of $65.2 million, versus $50.1 million, an increase of 30% year-over-year, and free cash flow of $63.4 million, versus $48.7 million, an increase of 30% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal fourth quarter ending March 31, 2025 as follows:
•Revenue between $132.5 million and $133.5 million.
•Adjusted EBITDA between $62.5 million and $63.5 million.
Doximity is updating guidance for its fiscal year ending March 31, 2025 as follows:
•Revenue between $564.6 million and $565.6 million.
•Adjusted EBITDA between $306.6 million and $307.6 million.
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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 our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and as may be updated in any subsequent Quarterly Reports on Form 10-Q. 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.
Investor Relations Contact:
Perry Gold
ir@doximity.com
Media Contact:
Amanda Cox
pr@doximity.com




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DOXIMITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, 2024March 31, 2024
Assets
Current assets:
Cash and cash equivalents$165,270 $96,785 
Marketable securities679,670 666,115 
Accounts receivable, net 137,504 101,332 
Prepaid expenses and other current assets30,259 48,709 
Total current assets1,012,703 912,941 
Property and equipment, net13,477 12,318 
Deferred income tax assets43,079 45,068 
Operating lease right-of-use assets9,332 12,332 
Intangible assets, net24,134 27,317 
Goodwill67,940 67,940 
Other assets1,492 1,458 
Total assets$1,172,157 $1,079,374 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$1,636 $2,253 
Accrued expenses and other current liabilities42,793 43,703 
Deferred revenue, current69,197 99,145 
Operating lease liabilities, current2,255 2,149 
Total current liabilities115,881 147,250 
Deferred revenue, non-current73 211 
Operating lease liabilities, non-current10,692 12,397 
Contingent earn-out consideration liability, non-current5,498 10,895 
Other liabilities, non-current8,893 7,224 
Total liabilities141,037 177,977 
Stockholders' Equity
Preferred stock— — 
Common stock188 187 
Additional paid-in capital878,701 823,885 
Accumulated other comprehensive income (loss)1,015 (2,664)
Retained earnings151,216 79,989 
Total stockholders’ equity
1,031,120 901,397 
Total liabilities and stockholders’ equity$1,172,157 $1,079,374 

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DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Revenue$168,603 $135,284 $432,111 $357,365 
Cost of revenue(1)
14,181 12,190 41,407 38,102 
Gross profit154,422 123,094 390,704 319,263 
Operating expenses(1):
Research and development22,421 19,946 68,235 61,835 
Sales and marketing38,491 34,956 108,102 99,612 
General and administrative13,585 9,641 32,943 27,854 
Restructuring and impairment charges
— — 2,304 7,936 
Total operating expenses74,497 64,543 211,584 197,237 
Income from operations79,925 58,551 179,120 122,026 
Other income, net9,915 4,481 26,060 15,223 
Income before income taxes89,840 63,032 205,180 137,249 
Provision for income taxes14,644 15,076 44,453 30,285 
Net income$75,196 $47,956 $160,727 $106,964 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.40 $0.26 $0.86 $0.56 
Diluted$0.37 $0.24 $0.80 $0.52 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic187,161 186,309 186,344 191,302 
Diluted202,233 200,463 200,625 207,265 
(1) Costs and expenses include stock-based compensation expense as follows (in thousands):
Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Cost of revenue$2,818 $2,466 $8,373 $7,205 
Research and development4,471 3,080 14,602 8,874 
Sales and marketing6,487 4,060 19,881 12,752 
General and administrative5,592 2,165 11,470 6,742 
Restructuring— — — 3,646 
Total stock-based compensation expense$19,368 $11,771 $54,326 $39,219 
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DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
Cash flows from operating activities
Net income$75,196 $47,956 $160,727 $106,964 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization2,655 2,509 7,830 7,717 
Deferred income taxes1,992 — 2,196 — 
Stock-based compensation, net of amounts capitalized19,368 11,771 54,326 39,219 
Non-cash lease expense441 522 1,392 1,599 
Accretion of discount on marketable securities, net(3,368)(1,683)(8,736)(3,477)
Amortization of deferred contract costs1,785 1,548 6,544 6,278 
Impairment of long-lived assets
— — 2,304 — 
Other411 1,500 289 1,627 
Changes in operating assets and liabilities:
Accounts receivable(12,986)(1,135)(36,464)8,509 
Prepaid expenses and other assets1,303 6,523 21,251 (3,981)
Deferred contract costs(5,853)(4,477)(9,069)(6,925)
Accounts payable, accrued expenses and other liabilities9,418 10,429 3,872 2,366 
Deferred revenue(24,628)(24,823)(30,085)(38,576)
Operating lease liabilities(545)(586)(1,599)(1,168)
Net cash provided by operating activities65,189 50,054 174,778 120,152 
Cash flows from investing activities
Purchases of property and equipment— (36)— (147)
Internal-use software development costs(1,771)(1,288)(5,018)(4,020)
Purchases of marketable securities(164,025)(101,112)(531,833)(281,338)
Maturities of marketable securities99,308 105,418 517,221 318,186 
Sales of marketable securities7,564 37,150 14,805 74,675 
Net cash provided by (used in) investing activities(58,924)40,132 (4,825)107,356 
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants
3,662 2,540 13,905 9,758 
Proceeds from issuance of common stock in connection with the employee stock purchase plan— — 1,422 1,494 
Taxes paid related to net share settlement of equity awards(8,107)(1,248)(16,329)(5,332)
Repurchase of common stock(19,307)(76,792)(93,505)(262,976)
Payment of contingent consideration related to a business combination— — (5,470)(5,390)
Payment of excise taxes on share repurchases
(1,491)— (1,491)— 
Net cash used in financing activities(25,243)(75,500)(101,468)(262,446)
Net increase (decrease) in cash and cash equivalents(18,978)14,686 68,485 (34,938)
Cash and cash equivalents, beginning of period184,248 108,403 96,785 158,027 
Cash and cash equivalents, end of period
$165,270 $123,089 $165,270 $123,089 
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds
$13,829 $8,925 $35,814 $38,363 

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Non-GAAP Financial Measures
To supplement our condensed 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 condensed 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.
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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 December 31,Nine Months Ended December 31,
2024202320242023
(unaudited)
(in thousands, except percentages)
Net income$75,196 $47,956 $160,727 $106,964 
Adjusted to exclude the following:
Stock-based compensation19,368 11,771 54,326 35,573 
Depreciation and amortization2,655 2,509 7,830 7,717 
Provision for income taxes14,644 15,076 44,453 30,285 
Restructuring and impairment charges
— — 2,304 7,936 
Change in fair value of contingent earn-out consideration liability90 452 513 768 
Other income, net(9,915)(4,481)(26,060)(15,223)
Adjusted EBITDA$102,038 $73,283 $244,093 $174,020 
Revenue$168,603 $135,284 $432,111 $357,365 
Net income margin44.6 %35.4 %37.2 %29.9 %
Adjusted EBITDA margin60.5 %54.2 %56.5 %48.7 %

Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
(unaudited)
(in thousands)
Net cash provided by operating activities$65,189 $50,054 $174,778 $120,152 
Purchases of property and equipment— (36)— (147)
Internal-use software development costs(1,771)(1,288)(5,018)(4,020)
Free cash flow$63,418 $48,730 $169,760 $115,985 
Other cash flow components:
Net cash provided by (used in) investing activities$(58,924)$40,132 $(4,825)$107,356 
Net cash used in financing activities$(25,243)$(75,500)$(101,468)$(262,446)
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Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
(unaudited)
(in thousands, except per share data and percentages)
GAAP cost of revenue$14,181 $12,190 $41,407 $38,102 
Adjusted to exclude the following:
Stock-based compensation(2,818)(2,466)(8,373)(7,205)
Amortization of acquired intangibles— — — (274)
Non-GAAP cost of revenue$11,363 $9,724 $33,034 $30,623 
GAAP gross profit$154,422 $123,094 $390,704 $319,263 
Adjusted to exclude the following:
Stock-based compensation2,818 2,466 8,373 7,205 
Amortization of acquired intangibles— — — 274 
Non-GAAP gross profit$157,240 $125,560 $399,077 $326,742 
GAAP gross margin91.6 %91.0 %90.4 %89.3 %
Non-GAAP gross margin93.3 %92.8 %92.4 %91.4 %
GAAP research and development expense$22,421 $19,946 $68,235 $61,835 
Adjusted to exclude the following:
Stock-based compensation(4,471)(3,080)(14,602)(8,874)
Non-GAAP research and development expense$17,950 $16,866 $53,633 $52,961 
GAAP sales and marketing expense$38,491 $34,956 $108,102 $99,612 
Adjusted to exclude the following:
Stock-based compensation(6,487)(4,060)(19,881)(12,752)
Amortization of acquired intangibles(1,061)(1,061)(3,183)(3,183)
Change in fair value of contingent earn-out consideration liability(90)(452)(513)(768)
Non-GAAP sales and marketing expense$30,853 $29,383 $84,525 $82,909 
GAAP general and administrative expense$13,585 $9,641 $32,943 $27,854 
Adjusted to exclude the following:
Stock-based compensation(5,592)(2,165)(11,470)(6,742)
Non-GAAP general and administrative expense$7,993 $7,476 $21,473 $21,112 
GAAP operating expense$74,497 $64,543 $211,584 $197,237 
Adjusted to exclude the following:
Stock-based compensation(16,550)(9,305)(45,953)(28,368)
Amortization of acquired intangibles(1,061)(1,061)(3,183)(3,183)
Change in fair value of contingent earn-out consideration liability(90)(452)(513)(768)
Restructuring and impairment charges
— — (2,304)(7,936)
Non-GAAP operating expense$56,796 $53,725 $159,631 $156,982 
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Three Months Ended December 31,Nine Months Ended December 31,
2024202320242023
(unaudited)
(in thousands, except per share data and percentages)
GAAP operating income$79,925 $58,551 $179,120 $122,026 
Adjusted to exclude the following:
Stock-based compensation19,368 11,771 54,326 35,573 
Amortization of acquired intangibles1,061 1,061 3,183 3,457 
Change in fair value of contingent earn-out consideration liability90 452 513 768 
Restructuring and impairment charges
— — 2,304 7,936 
Non-GAAP operating income$100,444 $71,835 $239,446 $169,760 
GAAP net income$75,196 $47,956 $160,727 $106,964 
Adjusted to exclude the following:
Stock-based compensation19,368 11,771 54,326 35,573 
Amortization of acquired intangibles1,061 1,061 3,183 3,457 
Change in fair value of contingent earn-out consideration liability90 452 513 768 
Restructuring and impairment charges
— — 2,304 7,936 
Income tax effect of non-GAAP adjustments (1)
(4,309)(2,790)(12,668)(10,024)
Non-GAAP net income$91,406 $58,450 $208,385 $144,674 
Non-GAAP net income margin54.2 %43.2 %48.2 %40.5 %
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic187,161 186,309 186,344 191,302 
Diluted202,233 200,463 200,625 207,265 
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic$0.49 $0.31 $1.12 $0.76 
Diluted$0.45 $0.29 $1.04 $0.70 
(1) For the three and nine months ended December 31, 2024 and 2023, management used an estimated annual effective non-GAAP tax rate of 21.0%.
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