Doximity Shares Swing After 7% Revenue Gain as AI Search Hype Outruns 1% Q2 Growth
Updated
Updated · Yahoo Finance · Aug 13
Doximity Shares Swing After 7% Revenue Gain as AI Search Hype Outruns 1% Q2 Growth
3 articles · Updated · Yahoo Finance · Aug 13
Summary
Doximity shares more than doubled after its fiscal Q1 report and an AI Search claim, then surrendered most of the spike and finished up 32.6% at $27.40.
Revenue rose 7% to $156.6 million and EPS came in at $0.29, but net income fell 54% to $24.3 million, adjusted EBITDA slipped about 6%, and free cash flow dropped 34%.
Guidance offered little fresh fuel: fiscal 2027 revenue was raised only to $671 million-$681 million, about 5% growth, while Q2 implies roughly 1% year-over-year growth.
Analysts said the rally was driven more by CEO Jeffrey Tangney's claim that AI Search generates over 10 times its running cost than by current results, since the product produced no revenue in the quarter.
The company still showed pockets of strength, including 112% net revenue retention among its top 20 clients, 127 enterprise customers above $500,000 in ARR, and a 48% adjusted EBITDA margin.