Doximity, Inc.

Q1 fiscal 2027 revenue was $157 million, up 7% year over year. Adjusted EBITDA was $75 million, a 48% margin, and both revenue and EBITDA beat the high end of guidance by 3% and 8%, respectively. Non-GAAP gross margin was 88% versus 91% last year; GAAP EPS was $0.13 and non-GAAP EPS was $0.29. Free cash flow was $40 million, cash/cash equivalents/marketable securities were $688 million, and the company remained debt-free. For Q2 fiscal 2027, revenue guidance is $170 million to $171 million, with adjusted EBITDA of $80.5 million to $81.5 million. Full-year fiscal 2027 revenue guidance was raised to $671 million to $681 million, and adjusted EBITDA guidance was raised to $309 million to $329 million; management expects gross margins in the mid- to high-80% range throughout the year.

Jeff Tangney framed the quarter as evidence that Doximity can invest aggressively in clinical AI without giving up software-like margins. He emphasized the NOHARM study results, saying Doximity Ask led U.S. models on error rate and safety, and highlighted the company’s built-in drug reference plus more than 12,000 physician PeerCheck editors as key differentiators. His tone was upbeat and expansive, repeatedly describing AI as a “once-in-a-generation opportunity” and saying the market is shifting from “AI Wild West” to privacy- and risk-managed enterprise buying.

Matt Sonefeldt said the quarter benefited from stronger clinician AI usage and solid demand across pharma and hospital customers, while noting the company will expand AI investment in fiscal 2027. He cited 127 pharma and hospital customers generating more than $500,000 in annual subscription revenue on a trailing 12-month basis, 83% of revenue from those large customers, top-20 NRR of 112%, and overall NRR of 107%. He also noted $37 million of SBC, a 40% GAAP effective tax rate, $688 million of cash and marketable securities, $40 million of free cash flow, and $92 million of share repurchases with about $400 million remaining in the program.

Analysts focused on the NOHARM study, AI monetization, budget sourcing, and how AI search will change buying patterns. Management said the study validated Doximity’s accuracy/safety position and should help enterprise hospital adoption, especially as AI steering committees and med-legal teams become more cautious. On monetization, management said AI search is still early but already earns more than 10x per search versus cost, contracts are moving from short-term capped pilots to larger upfront deals, and most contracted AI search revenue should be recognized in Q3. They also said pharma AI budgets are still dynamic, with one survey suggesting around 10% or less of budgets may go to AI and Doximity ranking as the #1 choice among buyers surveyed.