Doximity Surpasses Expectations with Record Q3 Revenue and EBITDA Margin
The latest quarterly earnings call from Doximity has brought exciting news, surpassing expectations in both revenue and adjusted EBITDA margin. As reported by Co-Founder and CEO Jeff Tangney during the conference call on February 6, 2025, the company delivered $169 million in revenue for the third quarter of fiscal 2025, a 25% year-on-year growth and a 10% beat from the high end of their guidance range.
This achievement marks another milestone in Doximity's journey towards becoming a leader in the healthcare technology space. The company's top clients have continued to show impressive growth, with the top 20 clients growing at an astonishing 122% on a trailing 12-month basis. These clients are among the largest and most sophisticated pharma companies, employing entire teams of analysts to measure marketing effectiveness.
Furthermore, Doximity's bottom line was equally strong in Q3, boasting a record adjusted EBITDA margin of 61%, or $102 million, which was up 39% year-on-year and 21% above the high end of their guidance. This represents a significant achievement, especially considering that just two years ago, the company reached its first quarter with revenue exceeding nine figures.
Network growth and engagement also continued to thrive in Q3. Unique active users on a quarterly, monthly, and weekly basis hit fresh highs, with news feed usage leading the way. Notably, for the first time ever in Q3, more than 1 million unique active prescribers scrolled Doximity's news feed to stay current on the latest news in their fields.
The company's workflow tools also reached new heights, with over 610,000 unique active prescribers using them. AI tools grew the fastest in Q3, with over 1.8 million prompts, a 60% increase over the prior quarter. Additionally, Doximity has earned the #1 best-in-class telehealth video platform by health systems CIOs and their staff for the fourth year running.
This achievement solidifies Doximity's position as a leader in healthcare technology, particularly in areas like digital transformation, mobile capabilities, and AI-powered solutions. As the company continues to innovate and expand its offerings, it will be exciting to see how these developments shape the future of healthcare.
