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Doximity DOCS reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 38 cents, which beat the Zacks Consensus Estimate of 27 cents by 40.7%. The company also reported earnings of 25 cents per share in the prior-year quarter.
Adjusted EPS for fiscal 2025 was $1.42, up 49.5% year over year.
DOCS registered GAAP net income per share of 31 cents, up from the year-ago quarter’s figure of 20 cents. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Revenue Details of Doximity
Total revenues grew 17% to $138.3 million year over year. Sales beat the Zacks Consensus Estimate by 3.4%. The revenue growth was driven by subscription revenues of $131.9 million, up 17% year over year. DOCS’ unique active users on a quarterly, monthly, weekly and daily basis all hit fresh highs in the fiscal fourth quarter. The company’s workflow tools — telehealth, fax, scheduling and AI tools — also hit fresh highs during the quarter with over 620,000 unique active prescribers.
Total revenues in fiscal 2025 rose 20% year over year to $570.4 million. Subscription revenues totaled $543.8 million, up 21% year over year. The company’s net revenue retention rate was 119% on a trailing 12-month basis.
Following the earnings release, shares of DOCS plunged 20.7% during after-hours trading on May 15. The stock fell 9.5% year to date compared with a 6.2% decline in the industry. The broader S&P 500 Index has moved down 0.3% in the same period.
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Margin Analysis of DOCS
Adjusted gross profit totaled $126.5 million, up 17.3% from the prior-year quarter’s level. Doximity reported an adjusted gross margin (as a percentage of revenues) of 91.4%, up almost 10 basis points (bps) year over year.
Research and development expenses totaled $24.8 million, up 23.1% year over year. Sales and marketing expenses totaled $37.6 million, up 12.2%. General and administrative expenses totaled $37.6 million, up 27.6%.
The company reported total adjusted operating income of $68 million, up 23.7% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 49.1%, up 260 bps year over year.
Financial Position of Doximity
DOCS exited the fiscal fourth quarter with cash, cash equivalents, and marketable securities worth $915.7 million compared with $844.9 million in the third quarter of fiscal 2025.
Total assets amounted to $1.26 billion, up sequentially from $1.17 billion.
DOCS’ Fiscal 2026 Guidance
Doximity issued its outlook for fiscal 2026 revenues. The company expects revenues to be between $619 million and $631 million. The Zacks Consensus Estimate was pegged at $627 million.