Doximity Announces Fiscal 2025 Second Quarter Financial Results
Doximity (NYSE: DOCS) reported strong fiscal Q2 2025 results with revenue reaching $136.8 million, up 20% year-over-year. The company demonstrated significant financial growth with net income increasing 44% to $44.2 million and adjusted EBITDA growing 41% to $76.1 million. Operating cash flow surged 430% to $68.3 million. The platform achieved record usage with over 600,000 unique active prescribers. For Q3 FY2025, Doximity expects revenue between $152-153 million and adjusted EBITDA of $83-84 million, while updating full-year guidance to revenue of $535-540 million and adjusted EBITDA of $274-279 million.
Doximity (NYSE: DOCS) ha riportato risultati positivi per il secondo trimestre fiscale del 2025, con un fatturato che ha raggiunto i 136,8 milioni di dollari, in aumento del 20% rispetto all'anno precedente. L'azienda ha mostrato una significativa crescita finanziaria, con un utile netto aumentato del 44% a 44,2 milioni di dollari e un EBITDA rettificato cresciuto del 41% a 76,1 milioni di dollari. Il flusso di cassa operativo è aumentato del 430% a 68,3 milioni di dollari. La piattaforma ha raggiunto un utilizzo record con oltre 600.000 prescrittori attivi unici. Per il terzo trimestre del FY2025, Doximity prevede un fatturato compreso tra i 152 e i 153 milioni di dollari e un EBITDA rettificato tra gli 83 e gli 84 milioni di dollari, aggiornando le stime per l'intero anno a un fatturato di 535-540 milioni di dollari e un EBITDA rettificato di 274-279 milioni di dollari.
Doximity (NYSE: DOCS) reportó resultados sólidos para el segundo trimestre fiscal de 2025, con ingresos que alcanzaron los 136,8 millones de dólares, un aumento del 20% en comparación con el año anterior. La empresa demostró un crecimiento financiero significativo con un ingreso neto que aumentó un 44% hasta 44,2 millones de dólares y un EBITDA ajustado que creció un 41% hasta 76,1 millones de dólares. El flujo de efectivo operativo se disparó un 430% hasta 68,3 millones de dólares. La plataforma alcanzó un uso récord con más de 600.000 prescriptores activos únicos. Para el tercer trimestre del FY2025, Doximity espera ingresos entre 152 y 153 millones de dólares y un EBITDA ajustado de 83 a 84 millones de dólares, mientras actualiza la guía del año completo a ingresos de 535 a 540 millones de dólares y un EBITDA ajustado de 274 a 279 millones de dólares.
Doximity (NYSE: DOCS)는 2025 회계연도 2분기 강력한 실적을 보고했으며, 수익이 1억 3,680만 달러에 도달했습니다, 전년 대비 20% 증가했습니다. 이 회사는 순이익이 44% 증가하여 4,420만 달러에 이르고, 조정 EBITDA는 41% 증가하여 7,610만 달러에 이르는 상당한 재무 성장을 보여주었습니다. 운영 현금 흐름은 430% 급증하여 6,830만 달러에 도달했습니다. 플랫폼은 60만 명 이상의 고유 활성 처방자와 함께 기록적인 사용량을 달성했습니다. 2025 회계연도 3분기 동안 Doximity는 수익이 1억 5,200만~1억 5,300만 달러, 조정 EBITDA가 8,300만~8,400만 달러가 될 것으로 예상하며, 연간 가이드를 5억 3,500만~5억 4,000만 달러의 수익과 2억 7,400만~2억 7,900만 달러의 조정 EBITDA로 업데이트했습니다.
Doximity (NYSE: DOCS) a annoncé des résultats solides pour le deuxième trimestre de l'exercice 2025, avec un chiffre d'affaires atteignant 136,8 millions de dollars, en augmentation de 20 % par rapport à l'année précédente. L'entreprise a démontré une croissance financière significative, avec un bénéfice net en hausse de 44 % à 44,2 millions de dollars et un EBITDA ajusté en hausse de 41 % à 76,1 millions de dollars. Le flux de trésorerie opérationnel a bondi de 430 % à 68,3 millions de dollars. La plateforme a atteint un usage record avec plus de 600 000 prescripteurs actifs uniques. Pour le troisième trimestre de l’exercice 2025, Doximity s’attend à un chiffre d’affaires compris entre 152 et 153 millions de dollars et un EBITDA ajusté de 83 à 84 millions de dollars, tout en mettant à jour les prévisions annuelles pour un chiffre d’affaires de 535 à 540 millions de dollars et un EBITDA ajusté de 274 à 279 millions de dollars.
Doximity (NYSE: DOCS) berichtete starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, mit Umsätzen von 136,8 Millionen Dollar, was einem Anstieg von 20% im Vergleich zum Vorjahr entspricht. Das Unternehmen zeigte ein signifikantes finanzielles Wachstum, da der Nettogewinn um 44% auf 44,2 Millionen Dollar stieg und das bereinigte EBITDA um 41% auf 76,1 Millionen Dollar wuchs. Der operative Cashflow stieg um 430% auf 68,3 Millionen Dollar. Die Plattform erzielte eine Rekordnutzung mit über 600.000 aktiven, einzigartigen Verschreibern. Für das dritte Quartal des Geschäftsjahres 2025 erwartet Doximity Einnahmen zwischen 152 und 153 Millionen Dollar und ein bereinigtes EBITDA zwischen 83 und 84 Millionen Dollar, während die Jahresprognose auf Einnahmen von 535-540 Millionen Dollar und ein bereinigtes EBITDA von 274-279 Millionen Dollar aktualisiert wird.
- Revenue increased 20% YoY to $136.8 million
- Net income grew 44% YoY to $44.2 million
- Adjusted EBITDA increased 41% YoY to $76.1 million
- Operating cash flow surged 430% YoY to $68.3 million
- Record platform engagement with 600,000 unique active prescribers
- None.
Insights
Doximity delivered an impressive
The company's FY2025 guidance of
Total revenues of
Net income growth of
“Our clinical workflow tools saw record use in Q2 with over 600,000 unique active prescribers,” said Jeff Tangney, co-founder and CEO of Doximity. “We’re proud to help physicians save time, so they can provide better care for their patients.”
Fiscal 2025 Second Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended September 30, 2023.
-
Revenue: Revenue of
, versus$136.8 million , an increase of$113.6 million 20% year-over-year. -
Net income and non-GAAP net income: Net income of
, versus$44.2 million , representing a margin of$30.6 million 32.3% , versus26.9% . Non-GAAP net income of , versus$61.1 million , representing a margin of$45.6 million 44.7% , versus40.1% . -
Adjusted EBITDA: Adjusted EBITDA of
, versus$76.1 million , an increase of$54.2 million 41% year-over-year, representing adjusted EBITDA margins of55.7% , versus47.7% . -
Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was
, versus$0.22 , while non-GAAP diluted net income per share was$0.15 , versus$0.30 .$0.22 -
Operating cash flow and free cash flow: Operating cash flow of
, versus$68.3 million , an increase of$12.9 million 430% year-over-year, and free cash flow of , versus$66.8 million , an increase of$11.6 million 475% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal third quarter ending December 31, 2024 as follows:
-
Revenue between
and$152 million .$153 million -
Adjusted EBITDA between
and$83 million .$84 million
Doximity is updating guidance for its fiscal year ending March 31, 2025 as follows:
-
Revenue between
and$535 million .$540 million -
Adjusted EBITDA between
and$274 million .$279 million
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
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.
DOXIMITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
September 30, 2024 |
|
March 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
184,248 |
|
$ |
96,785 |
|
|
Marketable securities |
|
621,310 |
|
|
666,115 |
|
|
Accounts receivable, net |
|
124,793 |
|
|
101,332 |
|
|
Prepaid expenses and other current assets |
|
27,361 |
|
|
48,709 |
|
|
Total current assets |
|
957,712 |
|
|
912,941 |
|
|
Property and equipment, net |
|
12,818 |
|
|
12,318 |
|
|
Deferred income tax assets |
|
43,761 |
|
|
45,068 |
|
|
Operating lease right-of-use assets |
|
9,774 |
|
|
12,332 |
|
|
Intangible assets, net |
|
25,195 |
|
|
27,317 |
|
|
Goodwill |
|
67,940 |
|
|
67,940 |
|
|
Other assets |
|
1,316 |
|
|
1,458 |
|
|
Total assets |
$ |
1,118,516 |
|
$ |
1,079,374 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
2,770 |
|
$ |
2,253 |
|
|
Accrued expenses and other current liabilities |
|
33,540 |
|
|
43,703 |
|
|
Deferred revenue, current |
|
93,751 |
|
|
99,145 |
|
|
Operating lease liabilities, current |
|
2,222 |
|
|
2,149 |
|
|
Total current liabilities |
|
132,283 |
|
|
147,250 |
|
|
Deferred revenue, non-current |
|
148 |
|
|
211 |
|
|
Operating lease liabilities, non-current |
|
11,269 |
|
|
12,397 |
|
|
Contingent earn-out consideration liability, non-current |
|
5,469 |
|
|
10,895 |
|
|
Other liabilities, non-current |
|
8,151 |
|
|
7,224 |
|
|
Total liabilities |
|
157,320 |
|
|
177,977 |
|
|
Stockholders' Equity |
|
|
|
||||
Preferred stock |
|
— |
|
|
— |
|
|
Common stock |
|
187 |
|
|
187 |
|
|
Additional paid-in capital |
|
863,113 |
|
|
823,885 |
|
|
Accumulated other comprehensive income (loss) |
|
2,676 |
|
|
(2,664 |
) |
|
Retained earnings |
|
95,220 |
|
|
79,989 |
|
|
Total stockholders’ equity |
|
961,196 |
|
|
901,397 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,118,516 |
|
$ |
1,079,374 |
|
DOXIMITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
||||||||||||
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Revenue |
$ |
136,832 |
|
$ |
113,612 |
|
$ |
263,508 |
|
$ |
222,081 |
|
Cost of revenue(1) |
|
13,676 |
|
|
12,759 |
|
|
27,226 |
|
|
25,912 |
|
Gross profit |
|
123,156 |
|
|
100,853 |
|
|
236,282 |
|
|
196,169 |
|
Operating expenses(1): |
|
|
|
|
|
|
|
|||||
Research and development |
|
23,240 |
|
|
19,958 |
|
|
45,814 |
|
|
41,889 |
|
Sales and marketing |
|
34,367 |
|
|
30,201 |
|
|
69,611 |
|
|
64,656 |
|
General and administrative |
|
10,103 |
|
|
8,966 |
|
|
19,358 |
|
|
18,213 |
|
Restructuring and impairment charge |
|
2,304 |
|
|
7,936 |
|
|
2,304 |
|
|
7,936 |
|
Total operating expenses |
|
70,014 |
|
|
67,061 |
|
|
137,087 |
|
|
132,694 |
|
Income from operations |
|
53,142 |
|
|
33,792 |
|
|
99,195 |
|
|
63,475 |
|
Other income, net |
|
9,029 |
|
|
5,903 |
|
|
16,145 |
|
|
10,742 |
|
Income before income taxes |
|
62,171 |
|
|
39,695 |
|
|
115,340 |
|
|
74,217 |
|
Provision for income taxes |
|
18,017 |
|
|
9,093 |
|
|
29,809 |
|
|
15,209 |
|
Net income |
$ |
44,154 |
|
$ |
30,602 |
|
$ |
85,531 |
|
$ |
59,008 |
|
Net income per share attributable to Class A and Class B common stockholders: |
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.24 |
|
$ |
0.16 |
|
$ |
0.46 |
|
$ |
0.30 |
|
Diluted |
$ |
0.22 |
|
$ |
0.15 |
|
$ |
0.43 |
|
$ |
0.28 |
|
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: |
|
|
|
|
|
|
|
|||||
Basic |
|
186,252 |
|
|
193,112 |
|
|
185,933 |
|
|
193,813 |
|
Diluted |
|
200,407 |
|
|
209,014 |
|
|
199,818 |
|
|
210,681 |
(1) Costs and expenses include stock-based compensation expense as follows (in thousands):
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Cost of revenue |
$ |
2,661 |
|
$ |
2,278 |
|
$ |
5,555 |
|
$ |
4,739 |
|
Research and development |
|
5,447 |
|
|
2,538 |
|
|
10,131 |
|
|
5,794 |
|
Sales and marketing |
|
6,808 |
|
|
2,697 |
|
|
13,394 |
|
|
8,692 |
|
General and administrative |
|
2,952 |
|
|
2,288 |
|
|
5,878 |
|
|
4,577 |
|
Restructuring |
|
— |
|
|
3,646 |
|
|
— |
|
|
3,646 |
|
Total stock-based compensation expense |
$ |
17,868 |
|
$ |
13,447 |
|
$ |
34,958 |
|
$ |
27,448 |
DOXIMITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||||||||||
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
44,154 |
|
|
$ |
30,602 |
|
|
$ |
85,531 |
|
|
$ |
59,008 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
2,613 |
|
|
|
2,604 |
|
|
|
5,175 |
|
|
|
5,208 |
|
|
Deferred income taxes |
|
204 |
|
|
|
— |
|
|
|
204 |
|
|
|
— |
|
|
Stock-based compensation, net of amounts capitalized |
|
17,868 |
|
|
|
13,447 |
|
|
|
34,958 |
|
|
|
27,448 |
|
|
Non-cash lease expense |
|
470 |
|
|
|
540 |
|
|
|
951 |
|
|
|
1,077 |
|
|
Accretion of discount on marketable securities, net |
|
(3,008 |
) |
|
|
(1,495 |
) |
|
|
(5,368 |
) |
|
|
(1,794 |
) |
|
Amortization of deferred contract costs |
|
2,033 |
|
|
|
2,063 |
|
|
|
4,759 |
|
|
|
4,730 |
|
|
Impairment of long-lived assets |
|
2,304 |
|
|
|
— |
|
|
|
2,304 |
|
|
|
— |
|
|
Other |
|
414 |
|
|
|
6 |
|
|
|
(122 |
) |
|
|
127 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|||||||||
Accounts receivable |
|
(4,106 |
) |
|
|
(4,388 |
) |
|
|
(23,478 |
) |
|
|
9,644 |
|
|
Prepaid expenses and other assets |
|
9,488 |
|
|
|
(13,093 |
) |
|
|
19,948 |
|
|
|
(10,504 |
) |
|
Deferred contract costs |
|
(1,785 |
) |
|
|
(1,238 |
) |
|
|
(3,216 |
) |
|
|
(2,448 |
) |
|
Accounts payable, accrued expenses and other liabilities |
|
7,396 |
|
|
|
(8,740 |
) |
|
|
(5,546 |
) |
|
|
(8,063 |
) |
|
Deferred revenue |
|
(9,161 |
) |
|
|
(6,831 |
) |
|
|
(5,457 |
) |
|
|
(13,753 |
) |
|
Operating lease liabilities |
|
(538 |
) |
|
|
(579 |
) |
|
|
(1,054 |
) |
|
|
(582 |
) |
|
Net cash provided by operating activities |
|
68,346 |
|
|
|
12,898 |
|
|
|
109,589 |
|
|
|
70,098 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|||||||||
Purchases of property and equipment |
|
— |
|
|
|
(41 |
) |
|
|
— |
|
|
|
(111 |
) |
|
Internal-use software development costs |
|
(1,543 |
) |
|
|
(1,238 |
) |
|
|
(3,247 |
) |
|
|
(2,732 |
) |
|
Purchases of marketable securities |
|
(197,395 |
) |
|
|
(144,942 |
) |
|
|
(367,808 |
) |
|
|
(180,226 |
) |
|
Maturities of marketable securities |
|
215,855 |
|
|
|
96,119 |
|
|
|
417,913 |
|
|
|
212,768 |
|
|
Sales of marketable securities |
|
7,241 |
|
|
|
— |
|
|
|
7,241 |
|
|
|
37,525 |
|
|
Net cash provided by (used in) investing activities |
|
24,158 |
|
|
|
(50,102 |
) |
|
|
54,099 |
|
|
|
67,224 |
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|||||||||
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants |
|
7,692 |
|
|
|
3,933 |
|
|
|
10,243 |
|
|
|
7,218 |
|
|
Proceeds from issuance of common stock in connection with the employee stock purchase plan |
|
1,422 |
|
|
|
1,494 |
|
|
|
1,422 |
|
|
|
1,494 |
|
|
Taxes paid related to net share settlement of equity awards |
|
(5,828 |
) |
|
|
(2,120 |
) |
|
|
(8,222 |
) |
|
|
(4,084 |
) |
|
Repurchase of common stock |
|
(22,984 |
) |
|
|
(164,429 |
) |
|
|
(74,198 |
) |
|
|
(186,184 |
) |
|
Payment of contingent consideration related to a business combination |
|
— |
|
|
|
— |
|
|
|
(5,470 |
) |
|
|
(5,390 |
) |
|
Net cash used in financing activities |
|
(19,698 |
) |
|
|
(161,122 |
) |
|
|
(76,225 |
) |
|
|
(186,946 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
72,806 |
|
|
|
(198,326 |
) |
|
|
87,463 |
|
|
|
(49,624 |
) |
|
Cash and cash equivalents, beginning of period |
|
111,442 |
|
|
|
306,729 |
|
|
|
96,785 |
|
|
|
158,027 |
|
|
Cash and cash equivalents, end of period |
$ |
184,248 |
|
|
$ |
108,403 |
|
|
$ |
184,248 |
|
|
$ |
108,403 |
|
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
|
|||||||||
Cash paid for taxes, net of refunds |
$ |
9,078 |
|
|
$ |
29,438 |
|
|
$ |
21,985 |
|
|
$ |
29,438 |
|
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
- 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 charge 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 charge, 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
,000: The number of customers with TTM subscription revenue greater than$500 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.$500,000
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 September 30, |
|
Six Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
(unaudited) |
|||||||||||||||
|
(in thousands, except percentages) |
|||||||||||||||
Net income |
$ |
44,154 |
|
|
$ |
30,602 |
|
|
$ |
85,531 |
|
|
$ |
59,008 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
17,868 |
|
|
|
9,801 |
|
|
|
34,958 |
|
|
|
23,802 |
|
|
Depreciation and amortization |
|
2,613 |
|
|
|
2,604 |
|
|
|
5,175 |
|
|
|
5,208 |
|
|
Provision for income taxes |
|
18,017 |
|
|
|
9,093 |
|
|
|
29,809 |
|
|
|
15,209 |
|
|
Restructuring and impairment charge |
|
2,304 |
|
|
|
7,936 |
|
|
|
2,304 |
|
|
|
7,936 |
|
|
Change in fair value of contingent earn-out consideration liability |
|
221 |
|
|
|
47 |
|
|
|
423 |
|
|
|
316 |
|
|
Other income, net |
|
(9,029 |
) |
|
|
(5,903 |
) |
|
|
(16,145 |
) |
|
|
(10,742 |
) |
|
Adjusted EBITDA |
$ |
76,148 |
|
|
$ |
54,180 |
|
|
$ |
142,055 |
|
|
$ |
100,737 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
136,832 |
|
|
$ |
113,612 |
|
|
$ |
263,508 |
|
|
$ |
222,081 |
|
|
Net income margin |
|
32.3 |
% |
|
|
26.9 |
% |
|
|
32.5 |
% |
|
|
26.6 |
% |
|
Adjusted EBITDA margin |
|
55.7 |
% |
|
|
47.7 |
% |
|
|
53.9 |
% |
|
|
45.4 |
% |
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
(unaudited) |
|||||||||||||||
|
(in thousands) |
|||||||||||||||
Net cash provided by operating activities |
$ |
68,346 |
|
|
$ |
12,898 |
|
|
$ |
109,589 |
|
|
$ |
70,098 |
|
|
Purchases of property and equipment |
|
— |
|
|
|
(41 |
) |
|
|
— |
|
|
|
(111 |
) |
|
Internal-use software development costs |
|
(1,543 |
) |
|
|
(1,238 |
) |
|
|
(3,247 |
) |
|
|
(2,732 |
) |
|
Free cash flow |
$ |
66,803 |
|
|
$ |
11,619 |
|
|
$ |
106,342 |
|
|
$ |
67,255 |
|
|
Other cash flow components: |
|
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) investing activities |
$ |
24,158 |
|
|
$ |
(50,102 |
) |
|
$ |
54,099 |
|
|
$ |
67,224 |
|
|
Net cash used in financing activities |
$ |
(19,698 |
) |
|
$ |
(161,122 |
) |
|
$ |
(76,225 |
) |
|
$ |
(186,946 |
) |
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
(unaudited) |
|||||||||||||||
|
(in thousands, except per share data and percentages) |
|||||||||||||||
GAAP cost of revenue |
$ |
13,676 |
|
|
$ |
12,759 |
|
|
$ |
27,226 |
|
|
$ |
25,912 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
(2,661 |
) |
|
|
(2,278 |
) |
|
|
(5,555 |
) |
|
|
(4,739 |
) |
|
Amortization of acquired intangibles |
|
— |
|
|
|
(137 |
) |
|
|
— |
|
|
|
(274 |
) |
|
Non-GAAP cost of revenue |
$ |
11,015 |
|
|
$ |
10,344 |
|
|
$ |
21,671 |
|
|
$ |
20,899 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP gross profit |
$ |
123,156 |
|
|
$ |
100,853 |
|
|
$ |
236,282 |
|
|
$ |
196,169 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
2,661 |
|
|
|
2,278 |
|
|
|
5,555 |
|
|
|
4,739 |
|
|
Amortization of acquired intangibles |
|
— |
|
|
|
137 |
|
|
|
— |
|
|
|
274 |
|
|
Non-GAAP gross profit |
$ |
125,817 |
|
|
$ |
103,268 |
|
|
$ |
241,837 |
|
|
$ |
201,182 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP gross margin |
|
90.0 |
% |
|
|
88.8 |
% |
|
|
89.7 |
% |
|
|
88.3 |
% |
|
Non-GAAP gross margin |
|
91.9 |
% |
|
|
90.9 |
% |
|
|
91.8 |
% |
|
|
90.6 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
GAAP research and development expense |
$ |
23,240 |
|
|
$ |
19,958 |
|
|
$ |
45,814 |
|
|
$ |
41,889 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
(5,447 |
) |
|
|
(2,538 |
) |
|
|
(10,131 |
) |
|
|
(5,794 |
) |
|
Non-GAAP research and development expense |
$ |
17,793 |
|
|
$ |
17,420 |
|
|
$ |
35,683 |
|
|
$ |
36,095 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP sales and marketing expense |
$ |
34,367 |
|
|
$ |
30,201 |
|
|
$ |
69,611 |
|
|
$ |
64,656 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
(6,808 |
) |
|
|
(2,697 |
) |
|
|
(13,394 |
) |
|
|
(8,692 |
) |
|
Amortization of acquired intangibles |
|
(1,061 |
) |
|
|
(1,061 |
) |
|
|
(2,122 |
) |
|
|
(2,122 |
) |
|
Change in fair value of contingent earn-out consideration liability |
|
(221 |
) |
|
|
(47 |
) |
|
|
(423 |
) |
|
|
(316 |
) |
|
Non-GAAP sales and marketing expense |
$ |
26,277 |
|
|
$ |
26,396 |
|
|
$ |
53,672 |
|
|
$ |
53,526 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP general and administrative expense |
$ |
10,103 |
|
|
$ |
8,966 |
|
|
$ |
19,358 |
|
|
$ |
18,213 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
(2,952 |
) |
|
|
(2,288 |
) |
|
|
(5,878 |
) |
|
|
(4,577 |
) |
|
Non-GAAP general and administrative expense |
$ |
7,151 |
|
|
$ |
6,678 |
|
|
$ |
13,480 |
|
|
$ |
13,636 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP operating expense |
$ |
70,014 |
|
|
$ |
67,061 |
|
|
$ |
137,087 |
|
|
$ |
132,694 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
(15,207 |
) |
|
|
(7,523 |
) |
|
|
(29,403 |
) |
|
|
(19,063 |
) |
|
Amortization of acquired intangibles |
|
(1,061 |
) |
|
|
(1,061 |
) |
|
|
(2,122 |
) |
|
|
(2,122 |
) |
|
Change in fair value of contingent earn-out consideration liability |
|
(221 |
) |
|
|
(47 |
) |
|
|
(423 |
) |
|
|
(316 |
) |
|
Restructuring and impairment charge |
|
(2,304 |
) |
|
|
(7,936 |
) |
|
|
(2,304 |
) |
|
|
(7,936 |
) |
|
Non-GAAP operating expense |
$ |
51,221 |
|
|
$ |
50,494 |
|
|
$ |
102,835 |
|
|
$ |
103,257 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP operating income |
$ |
53,142 |
|
|
$ |
33,792 |
|
|
$ |
99,195 |
|
|
$ |
63,475 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
17,868 |
|
|
|
9,801 |
|
|
|
34,958 |
|
|
|
23,802 |
|
|
Amortization of acquired intangibles |
|
1,061 |
|
|
|
1,198 |
|
|
|
2,122 |
|
|
|
2,396 |
|
|
Change in fair value of contingent earn-out consideration liability |
|
221 |
|
|
|
47 |
|
|
|
423 |
|
|
|
316 |
|
|
Restructuring and impairment charge |
|
2,304 |
|
|
|
7,936 |
|
|
|
2,304 |
|
|
|
7,936 |
|
|
Non-GAAP operating income |
$ |
74,596 |
|
|
$ |
52,774 |
|
|
$ |
139,002 |
|
|
$ |
97,925 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP net income |
$ |
44,154 |
|
|
$ |
30,602 |
|
|
$ |
85,531 |
|
|
$ |
59,008 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
17,868 |
|
|
|
9,801 |
|
|
|
34,958 |
|
|
|
23,802 |
|
|
Amortization of acquired intangibles |
|
1,061 |
|
|
|
1,198 |
|
|
|
2,122 |
|
|
|
2,396 |
|
|
Change in fair value of contingent earn-out consideration liability |
|
221 |
|
|
|
47 |
|
|
|
423 |
|
|
|
316 |
|
|
Restructuring and impairment charge |
|
2,304 |
|
|
|
7,936 |
|
|
|
2,304 |
|
|
|
7,936 |
|
|
Income tax effect of non-GAAP adjustments (1) |
|
(4,505 |
) |
|
|
(3,986 |
) |
|
|
(8,359 |
) |
|
|
(7,235 |
) |
|
Non-GAAP net income |
$ |
61,103 |
|
|
$ |
45,598 |
|
|
$ |
116,979 |
|
|
$ |
86,223 |
|
|
Non-GAAP net income margin |
|
44.7 |
% |
|
|
40.1 |
% |
|
|
44.4 |
% |
|
|
38.8 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
186,252 |
|
|
|
193,112 |
|
|
|
185,933 |
|
|
|
193,813 |
|
|
Diluted |
|
200,407 |
|
|
|
209,014 |
|
|
|
199,818 |
|
|
|
210,681 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net income per share attributable to Class A and Class B stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.33 |
|
|
$ |
0.24 |
|
|
$ |
0.63 |
|
|
$ |
0.44 |
|
|
Diluted |
$ |
0.30 |
|
|
$ |
0.22 |
|
|
$ |
0.59 |
|
|
$ |
0.41 |
|
(1) For the three and six months ended September 30, 2024 and 2023, management used an estimated annual effective non-GAAP tax rate of
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107362244/en/
Investor Relations Contact:
Perry Gold
ir@doximity.com
Media Contact:
Amanda Cox
pr@doximity.com
Source: Doximity
FAQ
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