Key Highlights

  • Doximity shares are up 94.09% in pre-market trading, near $40.10, after closing Wednesday at $20.66
  • Fiscal Q1 2027 revenue reached $157 million, up 7% year over year, beating the high end of guidance by 3%
  • Adjusted EBITDA of $75 million, with a 48% margin, beat guidance by 8%
  • The company's Doximity Ask AI clinical assistant topped the NOHARM benchmark for U.S.-based models
  • Management raised full-year fiscal 2027 guidance across revenue and adjusted EBITDA

What Happened

Doximity (NYSE:DOCS) shares are up 94.09% in pre-market trading, near $40.10, after closing Wednesday at $20.66. Doximity is a cloud-based digital platform for U.S. medical professionals, connecting over 80% of U.S. physicians across all specialties and practice areas, offering tools for healthcare practitioners including HIPAA-compliant messaging, AI-powered clinical documentation, telehealth solutions, and on-call scheduling.

The company reported fiscal Q1 2027 revenue of $157 million, up 7% year over year, beating the high end of guidance by 3%. Adjusted EBITDA came in at $75 million, a 48% margin, beating guidance by 8%. Non-GAAP gross margin was 88% versus 91% a year earlier.

Guidance Raised, AI Assistant Highlighted

Management raised full-year fiscal 2027 revenue guidance to $670 to $681 million, up from a prior range, and full-year adjusted EBITDA guidance to $309 to $329 million, with gross margins expected to trend mid-to-high 80% for the year. Second-quarter revenue guidance was set at $170 to $171 million, and second-quarter adjusted EBITDA guidance at $80.5 to $81.5 million.

The company also highlighted that its Doximity Ask AI clinical assistant topped the NOHARM benchmark for U.S.-based models, and noted usage growth was strong, with quarterly active workflow prescribers up 30% year over year, and clinical AI tools reaching 25% quarter-over-quarter adoption.

Doximity ended the quarter with $688 million in cash, no debt, and repurchased $92 million in shares, with $400 million remaining under its buyback program.

Conclusion

Doximity's 94.09% pre-market surge reflects strong investor reaction to an earnings and guidance beat, along with continued momentum in AI-powered clinical tools, even as investors will watch whether the gains hold once regular trading begins.

This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a financial professional before making investment decisions.