Doximity Q1 Earnings Call Highlights

Doximity’s fiscal 2027 first-quarter revenue rose 7% year over year to $157 million, while adjusted EBITDA reached $75 million, a 48% margin. The company raised its full-year revenue outlook to $671 million–$681 million.

Workflow prescribers using Doximity’s AI tools nearly doubled as a share of active users, AI prompt volume increased more than 25% sequentially, and AI Scribe usage rose tenfold year over year. Doximity said its Ask product had the lowest error rate among U.S. models in the independent NOHARM clinical study.

The company has signed 165 health-system AI clients and is beginning to monetize AI Search with pharmaceutical customers, with most contracted revenue expected in the fiscal third quarter. Doximity plans to increase AI investment, which will keep fiscal 2027 gross margins in the mid-to-high-80% range.

Doximity NYSE: DOCS reported fiscal 2027 first-quarter revenue of $157 million, up 7% from a year earlier, as the company cited improving demand from pharmaceutical and hospital customers and increased engagement with its clinical artificial intelligence tools. Adjusted EBITDA totaled $75 million, representing a 48% margin. CEO and Co-Founder Jeff Tangney said revenue and adjusted EBITDA exceeded the high end of the company’s guidance by 3% and 8%, respectively. Doximity also raised its full-year revenue outlook by $6 million while continuing to increase spending on AI infrastructure, safety and product development.

Tangney said Doximity’s clinical AI products reached record usage levels during the quarter. Quarterly active workflow prescribers increased more than 30% year over year, with nearly half using the company’s AI tools in the period. AI prompt volume grew more than 25% sequentially, while usage of Doximity’s AI Scribe note-taking product rose 10-fold in July compared with the prior year, according to the company.

The CEO also highlighted the NOHARM study, an independent evaluation of 24 clinical AI models across 1,100 real-world patient cases conducted by researchers from Stanford and Harvard. Tangney said Doximity Ask had the lowest clinical error rate and highest safety rating among U.S. models in the study. He said Doximity’s model recorded a 4.8% error rate, compared with 13.6% for Anthropic’s Fable 5 model.

Doximity attributed its results to a built-in drug reference that it said is expert-verified for drug dosing and interactions, as well as more than 12,000 physician PeerCheck editors who review and refine AI outputs. Tangney said hospitals are increasingly focused on privacy, data protection and the potential liability associated with clinical AI outputs. The company has signed 165 health-system AI clients, including eight hospitals on the nation’s honor roll, Tangney said. Recent health-system wins included Northwestern, Penn Medicine and the University of Michigan. Doximity said all 165 clients are live in the sense that they have privacy agreements in place and their physicians can use its AI tools, though systems are at varying stages of electronic-health-record integration.

Doximity launched AI Search in late April and said the product is generating higher engagement with pharmaceutical customers. CFO Matt Sonefeldt said the company did not recognize AI Search revenue during the first quarter, but it has onboarded an initial cohort of customers across more than two dozen pr...