Doximity, Inc. Class A (DOCS)

Doximity's stock price has been impacted by several events in the past six months. In Q4 Fiscal Year 2025 earnings, the stock crashed despite exceeding analyst estimates due to disappointing forward guidance. In Q1 Fiscal Year 2026 earnings, the stock rose after beating forecasts and raising FY2026 sales guidance. In Q2 Fiscal Year 2026 earnings, the stock fell despite strong results due to future guidance and broader market conditions, but later increased due to investor confidence and an upgraded annual revenue forecast. BMO Capital initiated coverage with a "Market Perform" rating, and Raymond James upgraded Doximity from "Outperform" to "Strong Buy."

Doximity's products and services exhibit some demand seasonality, influenced by its fiscal quarters and client contract cycles. The company has observed a sequential quarterly decline in revenue in the past. However, improved business visibility due to stable client budgets and longer-term contracts, especially for integrated programs with January start dates, has been noted. Despite strong Q1 performance, the company's guidance for the latter half of FY2026 remains cautious due to remaining runway and ongoing policy uncertainty. Analysts anticipate that Doximity's products and services may face some demand challenges, with projected revenue growth decelerating over the next 12 months compared to the last two years.

Doximity, Inc. operates a digital platform for medical professionals in the United States, offering tools for communication, collaboration, and professional development. Key products include Doximity Dialer for secure patient communication, Talent Solutions for healthcare recruitment, Continuing Medical Education (CME), professional networking tools, and AI-powered workflow tools like Doximity GPT and AI Scribe. The platform serves physicians, nurse practitioners, physician assistants, medical students, pharmaceutical manufacturers, and healthcare systems, with a substantial user base comprising over 80% of U.S. physicians and more than 50% of nurse practitioners and physician assistants.

Doximity, Inc. is headquartered in San Francisco, California, and operates as a digital platform exclusively for medical professionals in the United States. Its employees largely work remotely, and there is no indication of significant international operations or user bases outside the U.S.

Doximity has focused on enhancing its offerings and user experience, launching DocDefender to protect physicians' privacy and seeing increased adoption of its AI tools. The Dialer tool has been recognized as "Best in KLAS" for video conferencing platforms for four consecutive years. However, there have been criticisms regarding Doximity's business practices, including questionable revenue accounting and the creation of "stub" profiles. The competitive landscape for marketing pharmaceutical offerings to healthcare professionals has also intensified.

Doximity has a mixed ownership structure, with approximately 43.15% to 65.28% of the company's stock owned by institutional shareholders, 2.12% to 11.08% held by insiders, and 19.93% to 34.48% owned by retail investors and public companies. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and Fmr Llc. Morgenthaler Venture Partners IX LP is a significant individual shareholder.