Doximity beats, raises FY27 revenue outlook on accelerating clinical AI adoption

 

Doximity beats Q1 FY27 guidance and raises FY27 revenue outlook on accelerating clinical AI adoption

• Q1 revenue $157M (+7% YoY) beat estimates; non-GAAP EPS $0.29 (-19% YoY) missed; adjusted EBITDA $75M, 48% margin.
• Q1 revenue and EBITDA exceeded the high end of guidance, with growth reaccelerating to 7%, marking a strong quarter.
• FY27 revenue guidance raised $6M to $671–681M (~5% growth midpoint), with EBITDA margin expected around 47%.
• Biggest positive was explosive clinical AI adoption, with 165 health system clients and strong usage across the platform.
• Key growth drivers included the AI search pipeline, AI prompts up 25% QoQ, workflow prescribers up 30% YoY.
• Non-GAAP gross margin declined to 88% from 91%, pressured by higher AI compute costs.
• Q1 free cash flow was $40M, with $688M cash on hand and $92M of share repurchases.
• Key customer metrics: overall NRR 107% (top-20 at 112%) and 127 customers with >$500K TTM revenue.
• Management highlighted still-tight pharma budgets and uncertain timing, scale, execution and monetization of AI search as main risks.
• Tone was confident yet deliberate, with Q&A focused on AI strategy, monetization and evolving pharma demand trends.

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