Doximity, Inc.

Last but not least, we're pleased to announce the acquisition of Pathway, a six-person, -year-old Montreal startup specializing in AI clinical reference. Trained at McGill, Johns Hopkins, and Harvard, physicians make up half the team at Pathway. From a postdoc program at the prestigious Miele AI Institute, they founded Pathway five years before CHET GPT even existed. To help answer the ICU bedside questions they faced every day. Together, they painstakingly built one of the best and largest medical AI datasets around, spanning nearly every guideline, drug, journal, and landmark trial. They call this their corpus. And what makes it powerful is its cross-linked structure that lets AI quickly get accurate answers for doctors. It's much more than an LLM. It understands complex drug interactions and scores the strength of medical evidence, such as weighing a validated clinical trial more than a case study. The net result is industry-leading accuracy and speed. This May, Pathway's AI model scored a record high, 96%, on the U.S. medical licensing exam, outperforming their competitors. With almost no marketing budget, Pathway has grown to hundreds of thousands of registered users worldwide, with thousands paying $300 per year for their premium version. Above all, this AI native aqua-hire has been a great culture and mission fit for us. Over the past month, we've spent many a late night working with the Pathway team at our San Francisco offices. They're smart, honest, and hardworking, and we just couldn't like them more. We've already learned a lot from John, Louis, Chris, Kudder, Hove, and Peter. And yes, I'm calling them out here not just to thank them, but also to help them get visas to move here. The fruits of our collaboration are already on display. In record time, our engineering teams have integrated Pathway's corpus and fine-tuned AI into our free Doximity GPT product. Thousands of physician beta testers are already using it and liking its accuracy and speed. I'm personally excited to be back working in clinical reference again. It's where I began my career with apocrates over 20 years ago. Clinical reference is a key part of physician workflow that once again seems right for tech innovation. Looking ahead, we believe clinical AI is still in its early innings. We recently surveyed 1,800 US physicians, and more than half have yet to use any clinical AI. But many are interested. We're here to help. We launched Doximity GPT, the first HIPAA-compliant physician AI, just three months after CHAP GPT is released. We've since learned a lot from our beta testers and physician advisory summits about what doctors want most from AI. So our physician AI suite is now taking shape. GRIBE takes your notes, GPT writes your letters, Pathway's corpus helps answer your questions, and they all work together in a free HIPAA-compliant suite that's private to each physician. In sum, we're excited to make AI our next act here at Doximity. Okay, as always, I'd like to end by thanking my Doximity teammates who continue to work incredibly hard to care for those who care for us. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Thanks, Jeff, and thanks to everyone on the call today. First quarter revenue grew to $145.9 million, up 15% year over year, and exceeding the high end of our guidance range. Similar to prior quarters, our existing customers continued to lead our growth. We finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis. For our top 20 customers, net revenue retention was higher, at 119%. So our biggest, most sophisticated customers remain our fastest growing. We ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis. This is a roughly 17% increase from the 103 customers we had in this cohort a year ago, and these customers accounted for 84% of our total revenue. Turning to our profitability, non-GAAP growth margin in the first quarter was 91% versus 92% in the prior year period. Adjusted EBITDA for the first quarter was 79.8 million, and adjusted EBITDA margin was 55%, compared to 65.9 million and a 52% margin in the prior year period. We are proud to continue to run a very profitable business with margin expansion. Now turning to our balance sheet cash flow and an update on our share repurchase program. We generated free cash flow in the first quarter of 60.1 million, compared to 39.5 million in the prior year period, an increase of 52% year over year. Going forward, we expect our free cash flow to be positively impacted by the new tax law reversing the need to capitalize R&D. We expect our cash tax rate to drop to roughly 10 to 15% starting this fiscal year. We ended the quarter with 841 million of cash, cash equivalents, and marketable securities. During the first quarter, we repurchased $122.3 million worth of shares at an average price of $53.99. We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business. As of June 30th, we have 302 million remaining in our existing repurchase program. Now we'll provide additional details on our pathway acquisitions, as well as an update on stock-based compensation. We recently closed our acquisition of Pathway for 26 million in cash and up to 37 million in additional equity grants. Since we will offer our clinical reference tools free of charge, we expect no revenue contribution from Pathway this year. The non-GAP expense impact will be modest, estimated at just over 2 million in fiscal 2026, primarily related to personnel and infrastructure costs. Additionally, we expect stock-based compensation to increase to the high teams as a percentage of revenue in fiscal 2026 and 2027, and then trend back down to the mid-teens starting in 2028. This is primarily the result of our pathway acquisition, as well as one-time performance-based grants for our growing AI team. That said, we expect dilution from these new awards to be more than offset by our share repurchases this year. Now moving on to our outlook. For the second fiscal quarter of 2026, we expect revenue in the range of 157 to 158 million, representing 15 percent growth at the midpoint. And we expect adjusted EBITDA in the range of 87 to 88 million, representing a 56 percent adjusted EBITDA margin. For the full fiscal year, we now expect revenue in the range of 628 to 636 million, representing 11 percent growth at the midpoint. And we now expect adjusted EBITDA in the range of 341 to 349 million, representing a 55 percent adjusted EBITDA margin. Our increased outlook is due to broad-based strengths across our entire business. Specific to our pharma customers, we saw a promising start to the upsell season, which we believe is due to a couple of factors. First, our expanded commercial product portfolio continues to resonate with clients. In Q1, both our workflow and new speed modules saw strong growth. Second, the client portal continues to provide deeper insight into program performance and drive favorable purchasing decisions. In particular, by leveraging the portal, our agency partners have helped broaden our reach amongst SMB customers, contributing to bookings growth in this cohort of over 100 percent year over year in Q1. We are proud of our Q1 performance and are encouraged that despite the continued policy uncertainty, we have not yet seen any slowdown in our business. That said, we recognize there is still a lot of runway left in the year, and we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our outlook for the back half of fiscal 2026. Looking ahead, we are incredibly excited by how our recent investments in AI, particularly our pathway acquisition and the launch of Scribe, will help drive our long-term growth. More importantly, we are excited to be building products that align with our mission of helping physicians be more productive so that they can provide better care for their patients. With that, I will turn it over to the operator for questions.

Thank you. And everyone, if you have a question today, please press star 1 on your telephone keypad. We ask that you limit yourselves to one question and one follow-up. The first question comes from Brian Peterson, Raymond James.

Thanks for taking the question and congrats to a strong quarter. So clearly you're increasing the value you provide to physicians, and that's not just pajama time, but as you think about this next chapter that you referenced, how can you frame the opportunity for investors as they think about Scribe, Pathways, stocks, GPT? What does that open up for you? Is it right to think about that in terms of engagement or hours on the platform? I know it's early days, but I think that's something that we discuss a lot with investors.

Hey, Brian, this is Jeff. I'll take that question. And yes, we are happy to help doctors reduce their pajama time and improve their marriages too. But a great moment here, that doctor using our Scribe product. And we're certainly very proud of our first two acts here as a company, the first act being our newsfeed and our LinkedIn style feature set, which had a record high over a million prescribers last quarter. And our second act being our workflow tools, our scheduling, our facts, our telehealth, Doximity dialer, which was 630,000 active prescribers last quarter. So I really think AI, these AI tools in AI Suite could be our third act here. And that third act is answering the questions that doctors have when they're in front of patients. And it actually goes back to my roots, where I began in this whole business 20 years ago, which was following my Stanford physician roommates around and emptying out their lab coat pockets and seeing what kind of questions and what sort of books they carried around with them in the hospital. And as it turned out, the book that most doctors carried with them was a pharmacopoeia,

which

we then turned into a mobile app on the Blackberry and then the iPhone. And really, I think, disrupted the way doctors are able to carry a whole library in their pockets. Nowadays, if you were to ask doctors what they need help with answering questions, it really is the list of apps that are on their phone. Pocarty is my last company being one of the main players there. But we really see AI taking this to the next level. And so the Scribe product, where I'm able to write notes from the visit, will be able to know what types of clinical questions I'm facing and what sort of notes I might need to write afterwards. And so the GPT, which helps doctors write, the Scribe, which helps doctors take notes, and then the pathway acquisition, which answers their clinical questions and guidelines and drug dosage questions, all of that, I think, will work together seamlessly and provide an opportunity that I think is in many ways as big or perhaps even bigger than our first two apps. Specifically because this gets to the core of search. This gets to the core of doctors answering questions in front of patients, which is a very valuable moment for the industry, as I learned in my last company.

Appreciate the call. And Anna, maybe just a follow up for you on the guides for the second half of the year. I know that implies a deceleration. Is there anything that you're hearing from customers on budget plus or March ramps for the next calendar year? Any help there? Thanks, guys.

Yeah, thanks for the question, Brian. And as we mentioned in the prepared remarks, we had a very strong Q1. But Q1 is our smallest bookings quarter of the year. And we don't believe that in this environment, we should necessarily take one quarter's out performance and extrapolate that forward for the rest of the year. So that's what's reflected in our back half guidance. What I will say is that we have not yet seen any slowdown in our business. Our business still remains incredibly strong and our clients' budgets actually remain stronger than we initially expected. But simply given the fact that there's so much roadway left in a year and there continues to be policy uncertainty, we're just taking a much more cautious approach to the dollars we have not yet booked.

Up next, we'll take a question from Michael Tierney, Learing Partners.

Good afternoon and congrats on a nice quarter. Maybe if I can dig a little bit more into the upsell that you saw in the quarter, as you compared to previous years, especially now with the portal in place and helping to guide the upsell, any quality of differences in terms of the types of customers that you're engaging with, whether they're on the higher or lower side in terms of sizing and how exactly is the portal leading or letting the indicator, were they using the portal to drive the upsell or they engaged in the upsell and that allows you to resell them on the portal or show them all the advancements. Yeah,

hey Mike, thanks for the question. I think one of the things, first and foremost, that's been pretty unique this year for our upsell cycle is that all aspects of our business are performing well. So we have our SMB customers, as we mentioned, that are growing quickly and I'll get to the portal in a minute there. We also have both our news and workflow modules getting very good traction, which is on uptick some of our investments in news modules and then our health system customers are outperforming our expectations as well. So I think what's unique about this upsell cycle is that the strength is so broad based and when it comes to the client portal and the way in which it's helping us, I think the insights and the recommendations that we've been able to share, we now have the lion's share of brands on the portal, has really been a game changer as our customers think about maximizing their ROI and so that's helped our SMB customers grow over 100% year over year in Q1. And in addition to the portal, the other thing I'll call out is I think what's unique now is we have a diversified commercial product portfolio that's allowing our customers to maximize reach and frequency across our entire platform. So the workflow modules and the newsfeed modules have really been heavily leaned into. So across the board, it's been a really strong upsell season, which has been unique because I broad base of strength. There's always been one thing that might be less strong. We haven't seen this broad base of strength in a while.

Got it. I'll leave it at that for now.

Thanks. The next question comes from Elizabeth Anderson, Evercore ISI.

Hi guys. Good afternoon. Congrats on the quarter and thanks for the question. So I guess one thing and maybe these questions are too far question, but maybe they're related to you talked about and you've obviously been talking for several quarters about the drivers of increased utilization. I think maybe it's some of these newer products that you launched that helped it, but I'd be curious if you could talk maybe Jeff a little bit more like holistically about how you think about the drivers of that provider, like continued provider use of the products more frequently, if that makes sense.

Sure, Elizabeth. Yeah, it's a great question. As we said in the prepared remarks, we've seen record highs here really across all of our products. So let me start about some of the things, some of the key drivers there. So first in our workflow tools, our scheduler continues to grow and scheduling is something doctors really have to check every day. They need to know what time their shift starts. They need to know which cardiologist is on call. It's a very sticky product and we're just pleased to see that continue to notch up new client every new schedule we get is another set of 100 or 200 or 500 doctors who we know will be using our products every day. On our telehealth front, we continue to sign new clients there, our DocsEmity dialer package. I've never seen so many clients or over 200 health systems now. Roughly 45% of all US physicians have a paid version of our DocsEmity dialer telehealth platform. And that's also a very frequent use case. We're seeing doctors start to settle into the one day a week of sort of work from home and do their telehealth. And that's good for us because we're the platform that often powers that. The newsfeed does sometimes feed off of that workflow use. But I would say that that team has continued to grow on its own. And what it boils down to is 10 years of first party data, knowing what doctors are interested in what types of clinical news and just knowing best how to sort through all of the new journal articles that are published every week, every day, and help folks out with those. I will say AI has really helped that team a lot. We've used machine learning for a long time to algorithmically determine the best articles in the newsfeed for each doctor. But now we're using generative AI to go and actually rewrite the headlines in a way that's more digestible and frankly more interesting than the typical medical journal style and format. And that's also led to, I think, continued growth there. Last note on newsfeed, in the end, I think we're all as a society learning how to choose our information diet. We have information that can come in from every direction. And I think doctors are choosing to use us because we provide them a newsfeed that helps them be a better physician in their area of subspecialty and practice without a lot of the noise, I think, of other social media sources. So that's, I hope, gives you some sense in the drivers behind our core product growth.

Yeah, no, that's super helpful. And you guys obviously have very substantial EBITDA margins already. But I think you've talked really about some of the AI products and how they're helping on the revenue line and the product dimension. Can you talk a little bit about the opportunity on the OPEC side as well and internal uses of AI as well? Thanks.

Yeah, thanks for the question, Elizabeth. It's actually one of my favorite things to talk about. So I'm glad you asked. We're definitely leaning heavily into AI as a company for physicians, as Jeff was just talking about, for our customers in the form of our integrated multi-module programs and our client portal, and then for our own internal productivity. So you'll notice that our headcount at DocSymmedy has remained relatively flat over the last two years, even while we've grown the business as quickly as we have. So the fact that we are leaning into AI across our internal teams, whether it's sales and marketing, in GNA we use it for things like contract reviews, R&D uses it to supercharge programming. I think we're still in the early days of what that means for long-term margins. We haven't yet had enough time to assess how that might impact long-term margins. That said, I think it only contributes to a more efficient business model, and as we're guiding to a year of 55% growth, despite all of our investments in AI, I think that just speaks to how these AI tools that we use internally have really boosted our productivity.

Your next question is from Ryan Daniels from William Blair.

Yeah, congrats on the quarter and the deal, and thanks for taking the questions. If we think about the new AI offering, really compelling if we think of DocSymmedy, GPT, the AI scribe, and Pathways clinical tools. I'm curious if eventually you see that turning more into a revenue generation opportunity as a standalone product, similar to how you relaunched the dialer and then went to an enterprise model and have started to generate sales from that.

Yeah, thanks, Ryan. This is Jeff. Good question. We do see this being a lot like our dialer product, which did begin as a free product, but then became an enterprise product, and of course, has become a successful revenue stream, even though it's on write. We certainly see opportunities, in fact, have already been approached by a couple of our dialer clients about that for scribe, and we are in discussions. We're certainly pleased that Pathway has shown that they've gotten thousands of doctors to pay $300 per year for their clinical products, and we view that as another long-term opportunity for enterprise direct subscription revenue. So, a short answer is I think you can expect us to approach this like we did with dialer, which took a couple of years for us to go from initial free product to then the more enterprise premium versions.

Okay, perfect. And then maybe a follow-up for Anna. I don't know if I missed this earlier, but last quarter you gave us the percentage of revenue for the year you have under contract. I think it was around 70%. I'd love to get an update there. It sounds like that might have moved up, given the strong and broad upsells that you're seeing, which is great. Thank you.

Yeah, thanks for the question, Ryan. And as you mentioned, we started the year with just under 70% of our subscription-based revenue under contract. Naturally, today we're quite a bit higher. We're not going to give that exact number every quarter, but what I will say is the remainder of the year is primarily dependent on renewals, given our guidance continues to take a cautious approach to the policy uncertainty that our customers face today and the revenue we have yet to book. So, we feel very confident in where we are as far as a percent under contract perspective today.

Up next, we'll hear from Alan Lutz from Bank of America.

Good afternoon, and thanks for taking the question. Jeff, a question for you. I know it's early, but I'd love to get a sense of the super users of DocsGBT and maybe even describe the workflow tools, the AI tools. How long are some of these doctors on the platform using these workflow tools? Because I would think that it's a lot different than the newsfeed, which might be more episodic, workflow tools and maybe DocsGBT is more structured into the workflow of their life as a physician. I'd love to get a sense from you. What is that relative time on the platform or expectations for some of these super users of DocsGBT versus the newsfeed as we try to think about what the revenue generation opportunities could be for these over a longer period of time? Thank you.

Yeah, thanks for the question.

As

we said in our prepared remarks, over 75% of our Scribe users use us every week. Again, we're pleased to add another very sticky workflow product in our Scribe product. It's interesting you mentioned times of day. Our products seem to fall into really all times of day by the time you put them together. So I'll say the newsfeed is before work and after work. And in a sad statement on doctors' social lives, in the evenings on weekends, it's a good time to catch up and read the latest medical journals and stay up to date. Our telehealth products, of course, are during the nine to five and tend to be, again, clustered around a given day of the week, depending on that doctor's work schedule and when things flow out. The scheduling product really is an everyday nine to five. The Scribe product in everyday nine to five. The GPT product in everyday nine to five. So you put it all together. We're an app that gets opened by our doctors first thing in the morning to catch up on the news, all during the day to do their work, and then in the evenings and weekends, again, to stay up to date on the latest clinical advancements.

Thank you. Appreciate that. And then one for Anna. On Pathway, just want to verify that the OPEX from that deal is in the updated guidance. And then is there any way to frame kind of what the costs are that are going to flow through the P&L for that business over the remainder of the year? Thanks.

Yeah, thanks for the question, Allen. So Pathway, as we mentioned in the prepared remarks, is going to add just over $2 million to our OPEX for the year. Just as a reminder, it's a six-person company, so there's not much in the way of personnel. There's a little bit in the way of infrastructure costs, but as we go forward, I would expect that to be a pretty good run rate. So I would not assume much in the OPEX category from the Pathway acquisition.

The next question is from David Roman, Goldman Sachs.

Hey, thanks. This is Jimmy Parson for David. I wanted to go back to one of the comments made in the script just around agency bookings. You said this was opening up the small and medium-sized business opportunity for you that had grown 100% in the quarter. Can you just give us some context on whatever stats are most relevant, but what percent of the agency market you're engaging with today, where that can go over time, just to give us a sense of the opportunity that you see over the next one to two years?

Hey, Jamie. It's Perry. I can actually help with this one. So on the agency partners, in short, the program is going really well. We're now at more than a dozen agency portal partners to sign down, and they've already brought us more than $5 million to the business since the start of the program. So we hope to continue to grow the program, and so far, it's gone very well for us.

Okay. And then just a question on guidance and specifically OPEX priorities for the year. So your updated guidance implies about .5% revenue growth for the year and about 10% EBITDA growth. So really no operating leverage. You obviously delivered very strong operating leverage in the first quarter. I know there's the $2 million from Pathway embedded in numbers, but it really doesn't explain the lack of leverage in the back half. So are there specific investments across the P&L you're contemplating for the balance of the year? Just any color on how we should think about those P&L investments? Thank you.

Yeah, thanks for the question. And this is something we talked a little bit about last quarter as well when we were giving our initial guidance. We are definitely investing in AI this year. This is our year of AI investments. So there's going to be some incremental investments related to powering our AI solutions for our positions. So that's costs that relate to developing functionality, content licensing, increased usage, et cetera. So that is what you're seeing as far as the expense growth. All of our AI investments are tracking to what we initially believed to start the year. And we feel as though the fact that we can invest as we are in such a game changer of a solution for us that really is going to become our third act and still maintain a 55% adjusted EBITDA margin really just speaks to the inherent efficiency in our business.

Brian McDonald from Needham has the next question.

Hi, I think you're taking my questions and apologize if it's been asked already. On the pathway acquisition, just curious how you're planning to integrate that into Doximity. Do you expect it to be an extension of the core newsfeed? And then second, with the strong success we've seen out of open evidence and broad usage from doctors or rapid growth there, how much brand awareness do you feel like you have to build with the pathway product or maybe rebuild within physicians moving forward? Thanks.

Hey, Ron, this is Jeff. I'll take that. So yeah, we're excited about the integration success we've had with the pathway acquisition already. As we mentioned in our prepared remarks, the product has already been largely integrated. The team's been working super hard on it. I think we've got six months worth of integration work done in just a matter of a few weeks with the great team that we've brought on there. We've got about 50 of our team engineers focused on the AI and sort of inside a startup and bringing us a lot of growth and energy there. We are going to make it free, so we're not going to charge you $300 per year that pathway has been charging. We are putting it inside our Doximity GPT product, which already has a decent user base, as we've mentioned that had 5x growth year on year. And that just provides one box for doctors to go ask whatever type of question they have, be it clinical or administrative. And we see that the AI actually does a very good job of differentiating which question type is there and giving the appropriate type response for physicians on it. We think we bought the best company in the medical AI search space. We've looked high and low and it's shown in their 96% best in class, 5% above others on the USMLE. And when you dig in a little deeper level here, again, having worked in this industry for a decade myself, it really boils down to having gone through and codified, summarized thousands of randomly controlled landmark trials, thousands of clinical guidelines, thousands of drugs and doses at a discrete level. This data set that is built for AI to be fast and accurate, we think, in the long term will be the winner here. And we're excited to get up every day and deliver that for our doctors. Again, we think we can build this to be the leader in the space.

Appreciate the call, Andrea.

The next question is from Steven Valakett from Mizzou Host Security.

Oh, great. Thanks. Good afternoon. Thanks for taking the question. So, we recently did some survey work with physicians that used Doximity just to ask them, what is the number one feature they use most on the app? While professional physician networking was still the most widely used feature, at least in our survey, I was surprised just how fairly evenly spread the results were for the number one spot on feature usage across categories like physician networking versus telehealth dialer versus newsfeed, AI writing tool, etc. So, really the question is, I guess I'm curious how that compares to your own internal views as far as what's the most widely used. Also, do you think any one of the newer features will eventually become number one most used feature going forward just from your own perspective? Thanks.

Thanks, Steven. This is Jeff. Yeah, your survey matches largely with our own internal data on the product and what we call news network workflow. They each have their own VP and each of those teams are relatively evenly balanced when you look at their numbers and their resources on our end. So, we do think it's a diversified platform. And as we see new competitors and others come in, you know, we see them bringing new features, new point solutions, but again, not having the ability to provide it across an identity graph and a clinical graph and 10 years of knowing what each doctor treats the most and what is most interesting to them. So, yeah, we're pleased to have a diversified platform that is so evenly balanced as your survey indicates. Okay,

that's

helpful.

Thanks. Scott Schoenhuis from Keydink is up next.

Hey, team, thanks for answering my question. If we take a step back even from a year ago, but probably several years ago, it seems like you guys have a lot more visibility into your business, which must help you as a CFO. Can you talk about the steps that you currently put in place, whether it be pulling contracts for January 1st start date, more broader rolling out of the client portal, and maybe what steps you could take further for increased visibility. Thanks.

Yeah, thanks for the question, Scott, and I'm glad you hit on that because it's absolutely correct. We absolutely have better visibility than we've ever had here at DocSimity. Now, I'll say a part of that is due to the stability of our clients' budgets. At the end of the day, our growth rate is always going to be underpinned by how our clients are growing. So, we've seen a lot of stability there over the last year or two, which has certainly helped, but we've made great strides ourselves. So, you mentioned our January starts, and as we've pushed more customers towards these multi-module integrative programs, we're really excited to see the fact that they're signing up for longer deals. They're starting right away, and it's providing us a lot more visibility as we think out the next 12 months. Additionally, with our client portal, being able to see what our clients are doing in the portal has actually helped us with our visibility in the upsell cycle. And so, we're just going to continue to get a little smarter there and then also continue to see more clients lean into these integrated programs that I just mentioned. We definitely believe the upfront this year will continue to be led by these integrated offerings. So, more customers on these 12 month programs, definitely better for our visibility. So, we're really excited by what we're seeing there.

Thanks.

Next up is Alexi Gogolov from JP Morgan.

Thanks, Diane. I'm sorry, Alexi. I just have one question. You mentioned that your health system customers are outperforming expectations. Can you speak to the recovery you're seeing in the provider solutions business and just any additional color on its current state?

Sure. I think, sorry, you cut out a little bit, but I think you asked about our health system customers and the fact that we're seeing the outperformance there. So, I'll start by saying our forward business still is primarily leading our growth, but we've definitely seen an improvement in our health system business across the board. So, we've had really good traction amongst all three of our solutions, our marketing, our hiring, and our enterprise solution. One of the brighter spots is our enterprise offering, which grows really nicely for us lately. We've signed up 17 of the top 20 health systems and we've seen pretty strong paid adoption recently as well of our on-call scheduling tool. So, we're really pleased by what we're seeing with health systems. I will just caution and say, when it comes to the policy uncertainty, they're definitely right in it. So, while we remain cautiously optimistic that our health system business will continue to do well, we're not assuming that in our guidance because we are aware of the policy uncertainty they're seeing.

The

next question

today comes from Brian Tankulet, Jefferies.

Hey, good afternoon. Congrats on the quarter. Maybe just curious if you can share with us what you're seeing in the curative segment, just anything you can share with us on trends there.

Thanks. Yeah, thanks for the question, Brian. You can see that's actually broken out in other revenue in our financials and our 10Q, but we have a strong quarter. So, Curative, which is our full service physician staffing firm, makes up the bulk of that other revenue and it grew roughly 20% year and Q1. So, we're definitely seeing some nice traction there. We're excited by how AI can further enhance recruiting and I'm glad you asked about it because it's just a good moment to take a reminder and say the locum's industry itself is a multi-billion dollar industry and growing quite quickly. So, we definitely believe this is a really strong long-term opportunity for Doximity.

Awesome. Thank you.

Craig, hidden box from Jordan Stanley has the next question.

Thanks. I have a question on just the newsfeed. Understanding that video modules continue to gain momentum and an increasingly important growth driver. Just looking for how the newsfeed is performing and any new developments there to call out.

I was just going to say I appreciate you calling out the video is an important piece of our growth there. And certainly clients, I think historically pharmaceutical companies have not had a lot of video assets that were highly engaging and AI is helping them and their agency partners create good shorter video segments that highlight a mechanism of action or some other scientific chart. And so, we've seen those perform better in our newsfeed over time. But I mean, the main is what we shared in the prepared remarks, which is we had a record high number of quarterly active prescribers in our newsfeed this last quarter. And also we've seen strong double digit growth, percent growth in our number of articles tapped or watched.

Got it. And then just as a follow-up, more broadly just on the macro, kind of the 5 to 7% industry growth, you know, last quarter kind of pointed towards the low end given uncertainty. Just kind of curious 90 days later what you're seeing in the market, you know, from customers and does that change any view in terms of maybe the shape of the year or not?

Yeah, hey Craig, thanks for the question. As we sit here today, as our results obviously show and our guidance for Q2 shows, things are definitely looking better than we had initially expected. But as I mentioned in the prepared remarks, there's still a ton of runway left in the year. And the policy uncertainty has not got away. It hasn't changed much in the last 90 days or so here. It kind of remains as an overhang. So while we're very encouraged that we have seen this marginal improvement over the last 90 days, you know, our back half guidance still is going to take that measured approach to our clients' budgets, just once again given the fact that there remains this policy uncertainty. So likely if we kind of think about that 5 to 7% forecast range, it's definitely come up a little bit. You can see that in our guidance from what we initially expected. But we still think that's the right range to think about from a budget growth perspective.

Your next question is from Jessica Cassand, Piper Sandler.

Hi guys, thank you so much for taking the question and congrats on the acquisition. I was hoping on the ambient scribe technology, could you maybe help us understand the workflow? So how does the note get from the app into the EHR? And is the content of the note then directly into a claim? And then also would love to know, is your ambient scribe kind of prompting the doc throughout the visit to check for certain symptoms, ask certain questions, or conduct certain diagnostics, either for clinical accuracy or for revenue cycle optimization?

Thanks. Jess and Jeff, I'll answer that. So the way our flow works today for 10,000 beta testers has been to use their phone or their laptop, either one, as the microphone to listen in on the visit and then write the notes at the end of the visit. The doctor can choose any time during the visit what type of note or what type of template they want to choose. And this is where I think we've taken a slightly more open source approach, letting doctors actually work on their own instructions and templates, basically train their own scribe in the way that they prefer for their note types. That's probably been the key area of technology I think we've developed is we've made it easier for doctors to make sure the note is written in the way that they individually prefer, given their subspecialty and their practice. And we made it easy for them then to share that note template and style with others in their practice, which allows the more tech savvy doctors, I think, to help others in their practice. Most of our 10,000 beta testers actually came in not from us reaching out them, but from them asking for others to come in. So it's word of mouth growth has been strong. In terms of how that gets into the EHR, it's a cut paste. And that is one step to add to a process. But interestingly, when we talk to doctors about this, there's already so many steps, 19 clicks to order a Tylenol in a lot of these systems, that one cut paste really isn't that much to add. That said, we are in active discussions and we will certainly work on EHR integrations to make that one copy paste also be automated in the future.

Got it. And that's really helpful on Scribe. So with Workflow, you obviously, the super synergistic HIPAA compliant, HCP oriented kind of one stop shop. On use case, envision the workflow suite on an iPhone kind of supporting providers in their digital visits and ambulatory settings, or does the iPhone play just as big a role in the acute care setting? Or are we ultimately shooting for EHR integration? Just would love to understand kind of where you imagine workflow really, really capturing the market in the next three to five years.

Thanks, Jess. You're right that the iPhone is a key piece of technology for doctors, right? It's become their peripheral brain. That's what we called it back at Hippocrates. And that was, boy, 12 years ago, it's become a bigger and bigger part of their overall practice. And I think especially as they train their scribes to write notes the way they want and use it to just ask natural language questions, which will deliver AI driven answers to, it will continue to be a core part of being a physician. I just say in terms of the long term five year sort of vision, you can see it today in our iPhone app. If you go and look at the widgets that we offer, it's just this little square of widgets where doctors are choosing to not just have one app icon on their home screen, but four for us. The first is their newsfeed, time to catch up. The second is their scribe, our time to record a visit. The third is the dialer, need to call a patient, start a telehealth visit. And the fourth is our ask GPT, the ask a clinical question. And I do think that will be a synergistic AI suite for us as doctors again use us to do their daily workflow.

The next question comes from Stan Berenstein with Wells Fargo Securities.

Hi, thanks for your time. Thank you for taking the questions. First on the AI scribe, so it's given away for free. Presumably there are costs to deliver the scribe service. I'm just wondering if this becomes heavily utilized, are there any pressures to gross margins that could emerge in their high utilization?

I stand this is Jeff. Yeah, I'm glad you asked that question because one of the limiting factors I think we had a year or two ago with scribe was the cost of medical grade transcription and medical grade, HIPAA grade, LLM use. Thankfully for us, those costs have come down dramatically. It's been a lot of competition in the market and our expectation is they'll come down. We're in the pennies per visit camp on this now which is similar to where we're at with our dialer product. We don't see the cost there being a barrier given our business model.

Great. And then a quick follow up to Scott's question on visibility. Just tying this into the portal, it's been widely adopted. A lot of the brands are already on there. The portal allows faster ROI measurement. You have more modulation and the type of speed you can have. Are you seeing any signs that pharma is actually using the portal to adjust their budgets like intra quarter more frequently or have budgets really been steady overall not impacted by that capability?

Please Dan. Harry, I'll take that one. Yeah, as you said, the lion's share of our pharma brands now on the portal, it's actually pretty impressive given the denominator of the total number of pharma brands through a lot last year driven by SMB. So it's really the sales team works with the clients and it's really our recommendations tab that allows our sales team to seamlessly propose new deals, upsells and respond to pricing requests. So not only is this increasing our conversion rates but it's leading to larger sales and a more efficient sales motion. And our brands can see benefits from our frequent ROI updates and our audience insights.

The next question today is David Larson, BTIG.

Hey, congratulations on the great quarter. Just how many clients are now using the self-service portal? Is it like over 80%?

I could take that one, David. Yeah, it's the majority.

Okay, and then just in terms of like the macro and the risk of tariffs, I think what I heard was your guide does include the risk of some headwinds. So if things come in better than expected as you progress through the year, there could be some upside I would imagine.

Yeah, I think that's a fair way to think about it, David. I think what's interesting right now is, especially in the pharma space, is there's a lot being discussed in the way of policy changes that could be headwinds to our business or ones that could be tailwinds to our business, such as the potential DTC ban. So I definitely think if we end up seeing stable budgets through this period, we could see some upside to our business. And even if, I just want to make a long-term comment here, even if there are some policy changes that disrupt pharma, we have to remember that pharma companies in general spend tens of billions of dollars on sales and marketing. And if anything, we believe that in a more efficiency-focused environment, while there could be some near-term disruption, our customers will lean into spending dollars on the highest ROI channels, such as Duximity. So we feel like regardless of what happens with policy, we are very, very well positioned for the long-term, just given our industry-leading ROI.

The next question today comes from Jalindra Singh from Truest Securities.

Hi, this is Jenny Osborne-Jalindra. Thanks for taking my question. I was curious if you are seeing any differences in spending or initiatives across customers. We know a lot of large pharma companies are facing upcoming LOE's. I'm just wondering if you're seeing that influence how allocate HCP marketing budgets or try to maximize patient reach and engagement in the final years before that was exclusively. Could that dynamic create a tailwind for Duximity?

Yeah, thanks for the question, Jenny. I think back to some of the stuff we talked about earlier, what's really unique with what we're seeing with our clients right now is how broad-based the strength is. So we're doing very well at Top 20 Pharma. We're doing very well with mid-tier pharma and then doing very well with the long-tail SMB. As we think about where drugs might be in their life cycle, a lot of drugs continue to spend very evenly towards those end stages on Duximity. But what's more interesting, I think, is the drugs that are coming to market. A lot of these drugs are coming to market with a digital-first strategy, which is something we just hadn't seen before. So they're choosing to spend more on digital than they are on their Salesforce. And that's a huge benefit for Duximity. So as more and more of these drugs launch, we're capturing a larger share of their budget very quickly, and that's allowing us to scale. So I think we're in a really good position from a tailwind perspective as we continue to see innovation in the pharma market and more brands come to market. Got it. And just a quick

follow-up. Many players across the broader pharma space is lagging mid-side companies as relatively more stable in terms of spend and decision-making. Just from your vantage point, are you seeing a similar trend driving the momentum that you saw in the SMB space this quarter?

Yeah, thanks for the question there, Jenny. I mean, we've definitely seen better, better stability in SMB than we've seen since pre-COVID. We saw a little bit of a pullback post-COVID, but mid-tier and SMB have, I'll say, kind of come roaring back here over the past six to nine months for us. So that's been a really, really nice tailwind for our business. And I think it's the first time back to what I mentioned earlier, it's the first time since COVID that we've seen every single aspect of our pharma business fire in all cylinders. So we're really excited with what we're

seeing. Hey, Jenny, it's Perry. I'll just hop into that. We think these SMBs are just much more keenly aware of how critical digital has become to pharma commercialization efforts, even if they don't have a massive budget. And we think hopefully that's a development that will have stability going forward.

Everyone at this time, there are no further questions. I would like to hand back to Jeffrey Tingney for any additional or closing remarks.

Well, thank you everyone for joining our Q1 call. I just want to end again by thanking our entire Doximity team for continuing to work so incredibly hard to take care of those who take care of us. Thank you, everybody.

And again, everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.