Doximity, Inc.

Good day, everyone, and welcome to the Doximity Fiscal First Quarter 2025 Earnings Call. At this time, I would like to hand things over to Vice President of Investor Relations, Terry Gold. Please go ahead, sir.

Thank you, Operator. Hello and welcome to Doximity's Fiscal 2025 First Quarter Earnings Call. With me on the call today are Jeff Tangney, Co-Founder and CEO of Doximity, Dr. Nate Gross, Co-Founder and CSO, and Anna Bryson, CFO. A complete disclosure of our results can be found in our press release issued earlier today, as well as in our related form 8K, along with a copy of our prepared remarks, all available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available on our website. As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations, and assumptions, and are subject to various risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook. Please refer to the risk factors in our annual report on Form 10-K, any subsequent Form 10-Qs, and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-Q. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date August 8th, 2024. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure, such as a press release or through the filing form 8K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAAP metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be one time in nature, and we may or may not provide updates on those metrics in the future. I would now like to turn the call over to our CEO and co-founder, Jeff Tangney.

Jeff? Thanks, Perry, and thank you, everyone, for joining our first quarter earnings call. We have three updates today, our financials, network growth, and product highlights. First, our top line. We delivered $127 million in revenue for the first quarter of our fiscal 2025, which represents 17% year-on-year growth and a 5% beat from the high end of our guidance range. Of note, our top 20 clients once again grew the fastest for us, up 21% on a trailing 12-month basis. These clients are the largest, most sophisticated pharmaceutical manufacturers who employ entire teams of analysts to measure their marketing effectiveness. We believe our continued growth with them is proof of our value to the broader marketplace. Our bottom line was also strong in Q1 with an adjusted EBITDA margin of 52% or $66 million, which was 18% above the high end of our guidance. Our adjusted EBITDA grew 42% year on year as we continue to run a disciplined and efficient business. In short, we had a better than expected Q1 led by our new products and new client portal. Our CFO, Anna, will provide more detail on this in a minute. Okay, turning now to our network growth and engagement. We had another record quarter in Q1. Our unique active users on a quarterly, monthly, weekly, and daily basis were all up double-digit percentages year over year. And once again, Our daily active users grew the most, a sign that we've become the go-to app for hybrid mobile medical work. In Q1, a record 590,000 unique active prescribers used our generative AI, telehealth, messaging, and scheduling workflow tools to provide better care for their patients. Our newsfeed also set new records. Last quarter, article reads among prescribers reached an all-time high. We're proud to be both the newsfeed of medicine and the mobile medical office app. The practice of medicine is increasingly mobile, and we're honored to power it. Okay, now for updates on our new AI and client portal products. As a reminder, we're not AI tourists. For nearly a decade now, we've employed machine learning and AI to power our newsfeed, personalizing articles for each of our more than 2 million members based on their practice, publications, and reading histories. This personalized approach ensures that physicians receive the most relevant information, helping them stay current with the latest medical advancements. We were also one of the earliest adopters of generative AI, launching our own Doximity GPT product just three months after ChatGPT's debut. Doximity GPT provides a HIPAA-compliant writing assistant for doctors. To date, over a million and a half letter requests or prompts have been completed on Doximity GPT, demonstrating the significant demand doctors have to cut the scut or streamline administrative writing tasks. Last month, we made the front page of the New York Times in an article titled, In Constant Battle with Insurers, Doctors Reach for a Cudgel, AI. Now, if you ask me, We're more of a Jedi lightsaber than a cudgel, but I won't quibble. We're just proud to help busy physicians get better care for their patients. In the article, Dr. Aslan Tariq highlighted how Doximity GPT has halved his time spent on insurer appeal letters while increasing his appeal approval rate from 10% to 90%. The American Medical Association estimates that doctors spend 12 hours each week on prior authorization paperwork, So cutting that time in half is a substantial improvement. Dr. Tariq went on to say that Doximity GPT is, quote, finally a tool I can use to fight back, end quote. As always, we're proud to put physicians first and help them level the technology playing field with insurers. Our commitment to leveraging AI for the benefit of healthcare providers and patients remains unwavering, and we look forward to continuing to innovate in this space. Okay. Moving on now to our new client portal. Our portal is now available to 30% of our clients, and their feedback so far has been uniformly positive. In particular, they appreciate three key features. One, daily updates. Two, seamless sales data. And three, actionable recommendations. First, clients value our daily in-flight updates on their programs, which allow them to see their best performing content and optimize accordingly. The transparency, consistency, and fidelity of our daily online reports stands in stark contrast to others who often redact and cherry pick the data they provide in their quarterly emailed reports. Second, our seamless inclusion of prescription sales data allows clients to measure ROI not just annually or quarterly, but by individual headline or video message. This offers new real-time insight into what content resonates best, for instance, Does their new clinical trial or copay coupons resonate most with doctors and patients? Third, the portal provides recommendations for easy add-on programs, suggesting new audiences and content orchestration to optimize ROI. This easy access includes pricing and simplifies the entire upsell process. We are encouraged by our clients' reactions and upsells to date, and we remain on track with our longer-term portal plans. Our first phase, reporting and insights, is nearly complete. Our second phase, recommendations and pricing, is now available to clients and soon for our agency partners. Our third and final phase, content creation, is currently in beta with a full rollout expected by the end of this year. Clients love our portal's tech and transparency, and consequently, they're giving us a seat at their strategy table like never before. Okay, I'd like to end by thanking my Doximity teammates who continue to embrace our lean team principles and find more and more efficient ways to serve our physicians and clients. With record engagement and a robust pipeline of new products, I couldn't be more excited about what we're building together. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?