Doximity, Inc.

Ladies and gentlemen, thank you for standing by. My name is Abby and I'll be your conference operator today. At this time, I would like to welcome everyone to the Doximity fourth quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. And I would now like to turn the conference over to Perry Gold, Vice President of Investor Relations. You may begin.

Thank you, operator. Hello and welcome to Doximity's fiscal 2026 fourth quarter earnings call. With me on the call today are Jeff Tangney, co-founder and CEO of Doximity, and Matt Sonnefeld, our new 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-K. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 13th, 2026. 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 of a Form 8-K. 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, Barry, and thanks, everyone, for joining our fourth quarter earnings call. Today, I'll cover our financials, our AI investment year, and a couple of key hires. First, our financials. Q4 ended above the high end of our guidance with a record $107 million in free cash flow, our first ever nine-digit free cash flow quarter. Revenue was $145 million in Q4, up 5% year on year. For the full fiscal year ended March 31st, revenue was $645 million, up 13% year on year. On the bottom line, our adjusted EBITDA margin was 45% in Q4 and 55% for the full year. Our full year free cash flow was $317 million, up 19% year on year. Okay, now to our AI strategy, what we're calling our AI investment year. Let me start with the headline. Nearly half of all US doctors now work at hospitals that buy our workflow or scheduling tools. And as we become more integrated into their EHRs, we're increasingly a daily use for them. Our benchmark workflow engagement reached over 800,000 unique quarterly active prescribers in Q4, up roughly 30% year on year, a significant acceleration from the high single-digit growth we saw a year ago. Nearly half of all these active prescribers used our AI tools in Q4. We saw record high engagement across our entire platform last quarter, as doctors increasingly turned to us to be their AI assistant. In the nine months since we acquired Pathway, our AI search and scribe active users have tripled. And last month, these users averaged 31 queries each, nearly double January's usage. In a side-by-side clinical search evaluation completed by 4,700 physician residents last quarter, respondents chose our AI answers over our nearest competitor by two to one. They prefer our built-in drug reference and peer review. Hospitals are choosing us too. As of today, 140 health systems have purchased our clinical AI suite, including seven of the top 20 hospitals. Over 250,000 prescribers now have access to our clinical AI suite in a single hospital-approved HIPAA-compliant workflow. The race is on to build the best scribe and search AI for doctors. Our 380-person R&D team is all in to win this, and you'll see a slew of new physician-led features and agents from us in the coming months. I'm excited to share two of them today. First, we partnered with Allidade to provide value-based care AI agents for their network of thousands of primary care organizations. They'll use our Scribe and Clinical AI Suite to save time and money. With them, we're bringing AI assistance not just to big hospitals, but to small-town family physicians, too. Second, we've added e-prescribing to our platform so our doctors can write a prescription in a few taps after a telehealth call or while on the go. We save the doctor time and the patient money by letting the patient choose their preferred pharmacy from their phone. Over 1,000 prescribers have participated in our beta so far with strong uptake and usage. The back end is powered by our partner, Oton Health. Okay. Now to AI monetization, which is an important part of today's call. Having grown our AI search footprint so much over the last year, we're ready to monetize against our clients' large paid search budgets. We launched at our annual Pharma Client Summit in New York last week with 40 marketing leaders from the world's largest pharma companies in attendance. Their response was enthusiastic, particularly around using our AI search surface to reach prescribers in the exact moments they're researching options. something traditional paid search can't do. We've already closed our first few AI search deals with top 20 pharma manufacturers, but these are early innings in a nascent and regulated market, and our financial guidance reflects that. We've forecasted minimal AI revenue contribution this fiscal year, while allowing for a wider range of AI investments and related expenses, meaning higher R&D, compute, and marketing spend that will weigh on near-term margins. We think that's the right trade. Longer term, we believe AI Search alone represents a multi-billion dollar new TAM on top of the existing pharma marketing budgets we serve today. To put it plainly, we paid $63 million for Pathway AI last summer, and now we're spending against the opportunity it unlocked. This is our AI investment year. Two management updates. As we announced last month, Anna Bryson made the difficult decision to step down as CFO after being on medical leave. We all miss her and wish her the very best. Today, we're pleased to announce Matt Sonnefeld as our new CFO. Over a 25-year career, Matt has led IR, finance, and strategy at LinkedIn, Atlassian, and most recently, DocuSign. He began on the buy side at Capital Research, giving him a long-term perspective across tech. Matt has advised us externally for over a year, so we know him well. He's a strong operator, a great cultural fit, and he joins us in our San Francisco office full-time in early June. We're also pleased to welcome Dr. Steve Zatz as our new president, a Cornell, Yale, and Harvard trained physician Steve spent 20 years at WebMD Medscape with the last seven as president and CEO. We've admired Steve's work from the other side of the field for years. He's advised us over the past five months, and it's been great to have him on our side. He's based near New York City and brings deep, longstanding relationships across the industry. To close, we've long been the largest US physician network. And this year, we're becoming the largest physician AI platform. It's a multi-billion dollar opportunity, and we have the team, the tools, and the trust to win. That's the company we're investing to build this year. Thank you to my Doximity teammates who continue to work incredibly hard to care for those who care for us. With that, I'll hand it over to our VP of Investor Relations, Perry Gold.