Doximity Inc - Class A
Q1 2027 Earnings
Market Reaction
Did DOCS Beat Earnings? Q1 2027 Results
Doximity delivered a mixed fiscal first quarter for 2027, topping revenue expectations while falling short on profitability, a combination that sent shares lower amid broader concerns about demand trends. The medical networking platform posted revenue of $156.62 million, up 7.3% year-over-year and ahead of the $151.73 million consensus estimate, but adjusted non-GAAP diluted EPS of $0.29 missed the $0.30 analyst estimate by 4.20%. The earnings shortfall traced largely to surging costs, with stock-based compensation jumping roughly 68% to $36.75 million and research and development spending climbing to $38.48 million from $26.80 million a year ago, compressing GAAP net income margin from 36.5% to 15.5%. Adjusted EBITDA margin also contracted to 47.7% from 54.7%. Investors parsed the results with some caution, as softer billings raised questions about pharma marketing demand. Still, management pointed to strong AI product engagement and issued Q2 revenue guidance of $170 million to $171 million, while raising full-year revenue guidance to a range of $671 million to $681 million, signaling confidence in an acceleration ahead.
- 7% year-over-year revenue growth driven by accelerated subscription revenue
- Workflow active prescriber growth of more than 30% year-over-year
- Record engagement on the platform
- AI Search query growth of over 25% quarter-over-quarter
“We're proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement.”
Doximity CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q2 2027 (ending September 30, 2026), Doximity guides revenue of $170 million to $171 million and adjusted EBITDA of $80.5 million to $81.5 million. For the full fiscal year ending March 31, 2027, the company updated guidance to revenue of $671 million to $681 million and adjusted EBITDA of $309 million to $329 million.
DOCS YoY Financials
DOCS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.