The following is a summary of the Doximity, Inc. (DOCS) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Doximity reported Q2 2025 revenue of $137 million, a 20% year-on-year growth, and adjusted EBITDA margin reaching a record 56% or $76 million.

• Non-GAAP gross margin was reported at 92%, up from 91% in the prior year, reflecting efficient cost management and profitability.

• Free cash flow for the quarter stood at $66.8 million, a significant increase from $11.6 million in the prior year, driven primarily by higher profits.

Business Progress:

• Doximity has seen considerable growth in its network engagement, with record numbers in their news feed and workflow tools usage. The AI tools showed substantial increase, marking over 1 million Doximity GPT prompts in Q2.

• The new client portal launched for pharma clients resulted in stronger sales growth, with a notable increase in nurse practitioner audience extensions. Agency partnerships have also been prioritized, enhancing referral and client acquisition.

Opportunities:

• Doximity's strategy to roll out client portal to all pharma clients early next year, aiming to increase sales leverage by simplifying interactions and providing real-time insights.

• Expansion of workflow product offerings such as formulary and point of care; these new products have grown significantly and are expected to match the revenue contribution from traditional news feeds over the next three to five years.

Risks:

• The gradual growth from AI services and the need for longer timelines for launching new workflow products in the upcoming fiscal periods, possibly affecting quarterly revenue streams.

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