Summary
Doximity closed fiscal 2024 with March-quarter revenue of $118.06 million, up 6.4% from the prior-year quarter. Gross profit rose 8.4% to $105.49 million. Operating income climbed 27.4% to $41.85 million, and net income increased 32.4% to $40.62 million. Gross margin expanded 1.7 percentage points to 89.4%, while operating margin widened 5.9 percentage points to 35.5%.
For the full fiscal year ended March 31, 2024, revenue was $475.42 million, up 13.5%. Net income reached $147.58 million, up 30.8%, and operating income was $163.88 million, up 31.0%. Diluted earnings per share for the year were $0.72, up 35.8%. Full-year gross margin was 89.3% and full-year operating margin was 34.5%.
Profitability got a lift from cost discipline. A restructuring plan executed in August 2023 cut the workforce by 10%. On a non-GAAP basis, adjusted EBITDA for the March quarter was $56.4 million, up 15%, at a 47.8% margin, and non-GAAP net income was $51.0 million, a 43.2% margin. Full-year adjusted EBITDA was $230.5 million, up 25%, at a 48.5% margin. Stock-based compensation remained a large expense, and the full-year restructuring charge included severance and accelerated equity vesting.
Cash generation held up. Operating cash flow was $63.94 million in the quarter, up 37.1%, and $184.10 million for the fiscal year, up 2.5%. Free cash flow, which subtracts purchases of property and equipment and internal-use software development costs, was $62.3 million in the quarter, up 37%, and $178.3 million for the year, up 3%. Capital expenditures were $0.00 million in the quarter, down 100% from the prior-year quarter, and $0.15 million for the full year, down 91.4%.
Deferred revenue stood at $99.36 million at March 31, 2024, down 5.8% from a year earlier. Company commentary noted that billing milestones have shifted over time, with roughly 15% to 25% of a subscription contract billed upon signing, so deferred revenue may not be a good leading indicator of the business. Engagement stayed broad: the network covers more than 80% of U.S. physicians, and over 580,000 unique providers used its workflow tools last quarter. The company held $762.9 million in cash and marketable securities at year end.
Guidance points to a slower near term. Doximity issued an outlook for its fiscal first quarter ending June 30, 2024 and a separate outlook for the fiscal year ending March 31, 2025, in both cases covering revenue and adjusted EBITDA. On May 1, 2024, the board authorized a program to repurchase up to $500 million of Class A common stock, with no expiration date. All prior repurchase programs were completed as of April 2024.
Risks in the filings include macroeconomic uncertainty, the ability to retain members and keep them engaged on the platform, customer retention, security breaches or unauthorized access to member data, and competition. Cash paid for income taxes rose year over year, partly because tax law requires research and development spending to be capitalized and amortized. Management warned that this requirement may reduce operating cash flow in future periods, and the company also recorded excise taxes on share repurchases that remained unpaid at year end.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $118.1M | $135.3M | -12.7% | $111.0M | +6.4% |
| Gross profit | $105.5M | $123.1M | -14.3% | $97.3M | +8.4% |
| Gross margin | 89.4% | 91.0% | -1.6 pp | 87.7% | +1.7 pp |
| Research & development | $20.1M | $19.9M | +1.0% | $21.5M | -6.5% |
| Sales & marketing | $33.5M | $35.0M | -4.1% | $33.1M | +1.1% |
| General & administrative | $10.0M | $9.6M | +3.4% | $9.8M | +2.2% |
| Total operating expenses | $63.6M | $64.5M | -1.4% | $64.4M | -1.3% |
| Operating income (loss) | $41.9M | $58.6M | -28.5% | $32.8M | +27.4% |
| Operating margin | 35.5% | 43.3% | -7.8 pp | 29.6% | +5.9 pp |
| Net income (loss) | $40.6M | $48.0M | -15.3% | $30.7M | +32.4% |
| Net margin | 34.4% | 35.5% | -1.0 pp | 27.6% | +6.8 pp |
| Diluted EPS | $0.72 | $0.24 | +$0.48 | $0.14 | +$0.58 |
Risks
Revenue grew 13% in fiscal 2024 compared with 22% in fiscal 2023, and the company states its revenue growth rate has not been consistent and may decline. Managing growth and a declining full-time equivalent headcount from 977 at March 31, 2023 to 827 at March 31, 2024 could strain operations.
Net revenue retention rate was 114% at March 31, 2024, compared with 117% at March 31, 2023 and 157% at March 31, 2022. The company warns that if existing customers do not renew, renew on less favorable terms, or fail to purchase additional solutions, results could be materially adversely affected.
Customers with at least $100,000 and $500,000 of trailing 12-month subscription revenue accounted for approximately 90% and 81% of fiscal 2024 revenue, respectively. The loss of one or more key customers could slow revenue growth or cause revenue to decline.
The company expects increasing competition, including from large technology companies and emerging AI solutions focused on health care, and it uses AI/ML in services such as Doximity GPT. New AI laws and ethical concerns could increase compliance costs or limit AI use.
As a HIPAA Business Associate, the company faces significant penalties for noncompliance, and evolving state privacy laws such as CCPA and CPRA plus AI regulations could increase compliance costs and liability. The company also faces TCPA and fee-splitting risks related to member communications and healthcare arrangements.
In August 2023 the company initiated a restructuring plan and reduced its workforce by 10%, incurring $7.9 million in charges, including $3.6 million of stock-based compensation for accelerated vesting. Full-time equivalent headcount declined from 977 at March 31, 2023 to 827 at March 31, 2024.
Cash paid for income taxes increased to $51.3 million in fiscal 2024 from $5.2 million in fiscal 2023, partly due to the Tax Cuts and Jobs Act requirement to capitalize and amortize research and development expenditures. This may reduce operating cash flows in future periods.
Deferred revenue was $99.4 million at March 31, 2024, down 5.8% from $105.4 million at March 31, 2023. MD&A attributes a $6.1 million decrease in deferred revenue to the timing of customer billings and program launches.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Free Cash Flow
Net Revenue Retention
Non-GAAP Net Income Margin
Summary, forecast, risks and KPIs are extracted from Doximity, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.