Doximity, Inc. Q1 FY2026 Earnings Call

Good day, everyone, and welcome to Doximity's First Quarter 2026 Conference Call. At this time, I would like to hand the call over to Mr. Perry Gold. Please go ahead, sir.

Thank you, operator. Hello, and welcome to Doximity's Fiscal 2026 First Quarter Earnings Call. With me on the call today are Jeff Tangney, Co-Founder and CEO of Doximity; and Anna Bryson, CFO. A complete disclosure of our results can be found in our press release issued earlier today as well as in our related Form 8-K, along with a copy of our prepared remarks, all available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available on our website. As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook. Please refer to the risk factors in our annual report on Form 10-K, any subsequent Form 10-Qs and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-Q. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 07, 2025. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure such as a press release or through the filing of a Form 8-K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAAP metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be onetime in nature, and we may or may not provide updates on those metrics in the future. I would now like to turn the call over to our Co-Founder and CEO, Jeff Tangney. Jeff?

Thank you, Perry, and thank you all for joining our first quarter earnings call. We have four updates today: our financials, network growth, Scribe launch, and Pathway AI acquisition. First, regarding our financial performance, we achieved $146 million in revenue for the first quarter of fiscal 2026, marking a 15% year-over-year growth and a 4% increase above the high end of our guidance range. Our bottom line was also solid in Q1, with an adjusted EBITDA margin of 55%, which translates to $80 million, 11% higher than our guidance ceiling. Adjusted EBITDA rose by 21% year-on-year, while free cash flow growth was remarkable, climbing 52% year-on-year. In summary, we exceeded expectations in Q1 and are off to a promising start for our upsell season, driven by our new products and portal. Our CFO, Anna, will go into further details shortly. Now, let’s discuss our network growth and engagement. We recorded significant increases in unique active users on a quarterly, monthly, and daily basis, all achieving strong double-digit percentage growth year-on-year. Our news feed reached record numbers with over 1 million quarterly active prescribers and notable growth in articles read or tapped. In Q1, a record 630,000 unique active prescribers utilized our workflow tools to enhance patient care. Once again, our AI tools had the fastest growth, increasing by more than 5x year on year. We take pride in being both the newsfeed of medicine and the mobile medical office app. Next, we launched our Doximity AI scribe last week. Over the past year, more than 10,000 physicians, physician assistants, and nurse practitioners participated in our beta testing, during which our AI generated millions of patient notes for them. One surgeon remarked that it’s a game changer—a free, HIPAA-compliant ambient notetaking tool, unlike many costly alternatives. On average, doctors spend 1.5 hours every night typing in their notes, making an efficient scribe invaluable. One primary care physician even shared that using Scribe might have saved her marriage. With over 75% of Scribe users returning weekly, we’re thrilled to add this highly desirable tool to our workflow suite. The New England Journal of Medicine recently published an editorial cautioning that IT-controlled scribes could undermine clinician autonomy and empathy during medical visits, and we share this concern. Therefore, our scribe tool is fully controlled by the physician and guarantees privacy. Our next objective is to integrate Scribe directly into our popular telehealth tools, streamlining note-taking during phone calls or virtual visits within a single interface. Lastly, we are happy to announce the acquisition of Pathway, a Montreal-based startup of six people that specializes in AI clinical reference. The team includes physicians trained at McGill, Johns Hopkins, and Harvard. They had previously developed a comprehensive medical AI dataset, called their corpus, to assist with the daily questions faced in the ICU. The strength of this dataset lies in its cross-linked structure, allowing AI to provide reliable answers quickly. Pathway's AI model achieved a record 96% on the U.S. medical licensing exam this May, surpassing competitors. Despite limited marketing efforts, Pathway has attracted hundreds of thousands of registered users globally, many of whom subscribe to their premium service. This AI-native acquisition is a great cultural and mission fit for us. Over the past month, we've collaborated with the Pathway team, who have proven to be intelligent, trustworthy, and dedicated. Their contributions are already evident, as our engineering teams have integrated Pathway's Corpus and fine-tuned AI into our free Doximity GPT product, which thousands of physician beta testers are already using and appreciating for its accuracy and speed. Looking ahead, we see that clinical AI is still in its nascent stages. We recently surveyed 1,800 U.S. physicians, and more than half have yet to use any clinical AI, although many are interested. We launched Doximity GPT just three months after the release of ChatGPT, learning valuable insights from beta testers about what doctors seek from AI. Our physician AI suite is coming together: Scribe handles your notes, GPT composes your letters, and Pathway's Corpus answers your questions—all in a HIPAA-compliant system that respects each physician's privacy. In conclusion, we are excited to pursue AI as our next phase here at Doximity. I’d like to express my gratitude to my Doximity teammates for their hard work in supporting those who care for us. Now, I’ll turn it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Thanks, Jeff, and thanks to everyone on the call today. First quarter revenue grew to $145.9 million, up 15% year-over-year and exceeding the high end of our guidance range. Similar to prior quarters, our existing customers continued to meet our growth. We finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis. For our top 20 customers, net revenue retention was higher at 119%, so our biggest, most sophisticated customers remain our fastest growing. We ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis. This is a roughly 17% increase from the 103 customers we had in this cohort a year ago, and these customers accounted for 84% of our total revenue. Turning to our profitability. Non-GAAP gross margin in the first quarter was 91% versus 92% in the prior year period. Adjusted EBITDA for the first quarter was $79.8 million, and adjusted EBITDA margin was 55% compared to $65.9 million and a 52% margin in the prior year period. We are proud to continue to run a very profitable business with margin expansion. Now turning to our balance sheet, cash flow, and an update on our share repurchase program. We generated free cash flow in the first quarter of $60.1 million compared to $39.5 million in the prior year period, an increase of 52% year-over-year. Going forward, we expect our free cash flow to be positively impacted by the new tax law reversing the need to capitalize R&D. We expect our cash tax rate to drop to roughly 10% to 15% starting this fiscal year. We ended the quarter with $841 million of cash, cash equivalents, and marketable securities. During the first quarter, we repurchased $122.3 million worth of shares at an average price of $53.99. We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business. As of June 30, we had $302 million remaining in our existing repurchase program. Now I'll provide additional details on our Pathway acquisition as well as an update on stock-based compensation. We recently closed our acquisition of Pathway for $26 million in cash and up to $37 million in additional equity grants. Since we will offer our clinical reference tools free of charge, we expect no revenue contribution from Pathway this year. The non-GAAP expense impact will be modest, estimated at just over $2 million in fiscal 2026, primarily related to personnel and infrastructure costs. Additionally, we expect stock-based compensation to increase to the high teens as a percentage of revenue in fiscal 2026 and 2027 and then trend back down to the mid-teens starting in 2028. This is primarily the result of our Pathway acquisition as well as one-time performance-based grants for our growing AI team. That said, we expect dilution from these new awards to be more than offset by our share repurchases this year. Now moving on to our outlook. For the second fiscal quarter of 2026, we expect revenue in the range of $157 million to $158 million, representing 15% growth at the midpoint, and we expect adjusted EBITDA in the range of $87 million to $88 million, representing a 56% adjusted EBITDA margin. For the full fiscal year, we now expect revenue in the range of $628 million to $636 million, representing 11% growth at the midpoint. We now expect adjusted EBITDA in the range of $341 million to $349 million, representing a 55% adjusted EBITDA margin. Our increased outlook is due to broad-based strength across our entire business. Specific to our pharma customers, we saw a promising start to the upsell season, which we believe is due to a couple of factors. First, our expanded commercial product portfolio continues to resonate with clients. In Q1, both our workflow and newsfeed modules saw strong growth. Second, the client portal continues to provide deeper insights into the program performance and drive favorable purchasing decisions. In particular, by leveraging the portal, our agency partners have helped broaden our reach amongst SMB customers, contributing to bookings growth in this cohort of over 100% year-over-year in Q1. We are proud of our Q1 performance and are encouraged that despite the continued policy uncertainty, we have not yet seen any slowdown in our business. That said, we recognize there is still a lot of runway left in the year, and we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our outlook for the back half of fiscal 2026. Looking ahead, we are incredibly excited by how our recent investments in AI, particularly our Pathway acquisition and the launch of Scribe will help drive our long-term growth. More importantly, we are excited to be building products that align with our mission of helping physicians be more productive so that they can provide better care for their patients. With that, I will turn it over to the operator for questions.

The first question comes from Brian Peterson at Raymond James.

Congrats on a strong quarter. So clearly, you're increasing the value you provide to physicians, and that's not just pajama time. But as you think about this next chapter that you referenced, how can you frame the opportunity for investors as they think about Scribe, Pathway, DocsGPT? What does that open up for you? Is it right to think about that in terms of engagement or hours on the platform? I know it's early days. But I think that's something that will be discussed a lot with investors.

Brian, this is Jeff. I'll take that question. And yes, we are happy to help doctors reduce their pajama time and improve their marriages too. A great moment hearing from that doctor using our Scribe product. And we're certainly very proud of our first two acts here as a company. The first act being our newsfeed and our LinkedIn style feature set, which has a record high over 1 million prescribers last quarter. And then our second act being our workflow tools, scheduling, fax, telehealth, Doximity Dialer, which was 630,000 active prescribers last quarter. So I really think AI, these AI tools and AI suite could be our third act here. That third act is answering the questions that doctors have when they're in front of patients. It actually goes back to my roots, where I began in this whole business 20 years ago, which was following my Stanford physician roommates around and emptying out their lab coat pockets and seeing what kinds of questions and what sort of books they carried around with them in the hospital. As it turned out, the book that most doctors carried with them was Pharmacopoeia, which we then turned into a mobile app on the BlackBerry and then the iPhone, and really disrupted the way doctors are able to carry a whole library in their pockets. Nowadays, if you were to ask doctors what they need help with answering questions, it really is the list of apps that are on their phone. Epocrates is my last company being one of the main players there. But we really see AI taking this to the next level. And so the Scribe product, where I'm able to write notes from the visit, will be able to know what types of clinical questions I'm facing and what sort of notes I might need to write afterward. The GPT helps doctors write, the Scribe takes notes, and the Pathway acquisition answers their clinical questions and guidelines and drug dosage questions. All of that, I think, will work together seamlessly and provide an opportunity that I think is, in many ways, as big or perhaps even bigger than our first two acts, specifically because this gets to the core of search. This gets to the core of doctors answering questions in front of patients, which is a very valuable moment for the industry, as I learned in my last company.

Appreciate the color. And Anna, maybe just a follow-up for you on the guide for the second half of the year. I know that implies a deceleration. Is there anything that you're hearing from customers on budget flush or March ramps in the next calendar year? Any help there?

Yes. Thanks for the question, Brian. And as we mentioned in the prepared remarks, we had a very strong Q1, but Q1 is our smallest bookings quarter of the year. We don't believe that in this environment we should necessarily take one quarter's outperformance and extrapolate that forward for the rest of the year. So that's what's reflected in our back half guidance. What I will say is that we have not yet seen any slowdown in our business. Our business still remains incredibly strong and our clients' budgets actually remained stronger than we initially expected. But simply given the fact that there's so much runway left in a year, and there continues to be policy uncertainty, we're just taking a much more cautious approach to the dollars we have not yet booked.

Next, we'll take a question from Michael Cherny, Leerink Partners.

Congrats on a nice quarter. Maybe if I can just dig a little bit more into the upsell that you saw in the quarter. As you compare it to previous years, especially now with the portal in place and helping to guide the upsell, any qualitative differences in terms of the types of customers that you're engaging with, whether they're on the higher or lower side in terms of sizing? And how exactly is the portal a leading or lagging indicator, i.e., were they using the portal to drive the upsell or do they engage in the upsell and then that allows you to resell them on the portal or show them all the advancements? Just curious on some more color there would be great.

Yes, Mike, thank you for the question. This year, what's been particularly unique in our upsell cycle is that all areas of our business are thriving. Our small and medium-sized business customers are growing rapidly, and I'll discuss the portal shortly. Additionally, both our news and workflow modules are gaining significant traction, which is a result of increased investment in our news offerings. Our health system customers are also exceeding our expectations. What's distinct about this upsell cycle is the widespread strength across the board. Regarding the client portal and its benefits, the insights and recommendations we provide, along with the majority of brands using the portal, have been transformative for our customers in maximizing their return on investment. This has contributed to our SMB customers experiencing over 100% growth year-over-year in Q1. Beyond the portal, I want to highlight that we now have a diverse commercial product portfolio enabling our customers to enhance their reach and frequency across our platform. The workflow and news feed modules have been heavily utilized. Overall, this upsell season has been exceptionally strong, and the broad-based strength is noteworthy as we haven't seen this level of widespread success in quite some time.

The next question comes from Elizabeth Anderson at Evercore ISI.

Congratulations on the quarter and thank you for the question. I see that you have a two-part question, which may also be related. You've been discussing for several quarters the factors that have contributed to increased utilization. I think some of the newer products you launched could be influencing this, but I'd be interested in hearing from you, Jeff, about your overall perspective on the factors that encourage providers to use the products more frequently, if that makes sense.

Sure, Elizabeth. Yes, it's a great question. Yes, as we said in the prepared remarks, we've seen record highs here really across all of our products. So let me start about some of the key drivers there. In our workflow tools, our scheduler continues to grow, and scheduling is something doctors really have to check every day. They need to know what time their shift starts and which cardiologist is on call. It's a very sticky product, and we're just pleased to see that continue to notch up new client wins. Every new schedule we get is another set of 100 or 200 or 500 doctors who we know will be using our products every day. On our telehealth front, we continue to sign new clients there. Our Doximity dialer package has never seen so many clients or over 200 health systems now, roughly 45% of all U.S. physicians have a paid version of our Doximity Dialer telehealth platform. And that's also a very frequent use case. We're seeing doctors start to settle into the one day a week of sort of work from home and do their telehealth. That's good for us because we're the platform that often powers that. The newsfeed does sometimes feed off of that workflow use. But I would say that team has continued to grow on its own. And what it boils down to is 10 years of first-party data, knowing what doctors are interested in what types of clinical news and just knowing best how to sort through all of the new journal articles that are published every week, every day and help folks out with those. I will say AI has really helped that team a lot. We've used machine learning for a long time to algorithmically determine the best articles in the newsfeed for each doctor, but now we're using generative AI to go and actually rewrite the headlines in a way that's more digestible and frankly, more interesting than the typical medical journal style and format. And that's also led to, I think, continued growth there. Last note on newsfeed. In the end, I think we're all, as a society, learning how to choose our information diet. We have information that can come in from every direction. I think doctors are choosing to use us because we provide them a newsfeed that helps them be a better physician in their area of subspecialty and practice without a lot of the noise, I think, of other social media sources. So that's I hope it gives you some sense in the drivers behind our core product growth.

Yes. No, that's super helpful. And you guys obviously have a very substantial EBITDA margins already. But I think you've talked about some of the AI products and how they're helping on sort of the revenue line and the product dimension. Can you talk a little bit about the opportunity on the OpEx side as well and sort of internal uses of AI as well?

Yes. Thanks for the question, Elizabeth. It's actually one of my favorite things to talk about. I'm glad you asked. We're definitely leaning heavily into AI as a company for physicians, as Jeff was just talking about, for customers in the form of our integrated multi-module programs and our client portal, and then for our own internal productivity. You'll notice that our headcount at Doximity has remained relatively flat over the last two years, even while we've grown the business as quickly as we have. So the fact that we are leaning into AI across our internal teams, whether it's sales and marketing, in G&A, we use it with contract reviews, R&D, use it to supercharge programming. I think we're still in the early days of what that means for long-term margins. We haven't yet had enough time to assess how that might impact long-term margins. That said, I think it only contributes to a more efficient business model. And as we're guiding to a year of 55% growth despite all of our investments in AI, I think that just speaks to how these AI tools that we've used internally have really boosted our productivity.

Your next question is from Ryan Daniels from William Blair.

Yes. Congrats on the quarter and the deal. And thanks for taking the questions. If we think about the new AI offering, really compelling if we think of Doximity GPT, the AI Scribe, and Pathways clinical tools. I'm curious if eventually you see that turning more into a revenue generation opportunity as a stand-alone product similar to how you've relaunched the Dialer and then went to an enterprise model and have started to generate sales from that?

Yes, thanks, Ryan. This is Jeff. Good question. We see this being similar to our dialer product, which started as a free offering and later evolved into an enterprise product, ultimately becoming a successful revenue stream. We recognize the opportunities here and have already had discussions with a few of our Dialer clients regarding Scribe. We are encouraged by the success of Pathway, which has managed to get thousands of doctors to pay $300 per year for their clinical products, presenting another long-term opportunity for direct subscription revenue. In summary, you can expect us to approach this in the same way we did with Dialer, which took a few years to transition from the initial free product to premium enterprise versions.

Okay. Perfect. And then maybe a follow-up for Anna. I don't know if I missed this earlier, but last quarter, you gave us the percentage of revenue for the year you have under contract, I think it was around 70%. I'd love to get an update there. It sounds like that might have moved up given the strong and broad upsells that you're seeing, which is great.

Yes. Thanks for the question, Ryan. As you mentioned, we started the year with just under 70% of our subscription-based revenue under contract. Naturally, today, we're quite a bit higher. We're not going to give that exact number every quarter. But what I will say is the remainder of the year is primarily dependent on renewals, given our guidance continues to take a cautious approach to the policy uncertainty that our customers face today and the revenue we have yet to book. So we feel very confident in where we are as far as a percent under contract perspective today.

Next, we'll hear from Allen Lutz from Bank of America.

Jeff, a question for you. I know it's early, but would love to get a sense of the super users of DocsGPT and maybe even describe the workflow tools, the AI tools. How long are some of these doctors on the platform using these workflow tools? Because I would think that it's a lot different than the newsfeed, which might be more episodic, whereas the workflow tools and maybe DocsGPT is more structured into the workflow of their life as a physician. Would love to get a sense from you what is that relative time on the platform or expectations for some of these super users of DocsGPT versus the newsfeed as we try to think about what the revenue generation opportunities could be for these over a longer period of time.

Yes. No, thanks for the question. So as we said in our prepared remarks, over 75% of our Scribe users use us every week. So again, we're pleased to add another very sticky workflow product in our Scribe product. It's interesting, you mentioned times of day. Our products seem to fall into really all times a day by the time you put them together. I'll say the newsfeed is before work and after work, and in a sad statement on doctor social lives in the evenings and weekends, it's a good time to catch up and read the latest medical journals and stay up to date. Our telehealth products, of course, are used during the 9 to 5 and tend to be again, clustered around a given day of the week, depending on that doctor's work schedule and when things flow out. The scheduling product really is an everyday 9 to 5, the Scribe product in everyday 9 to 5, and the GPT product in everyday 9 to 5. So you put it all together, we're an app that gets opened by our doctors first thing in the morning to catch up on the news, all during the day to do their work, and then in the evenings and weekends, again, to stay up to date on the latest clinical advancements.

Appreciate that. And then one for Anna. On Pathway, I just want to verify that the OpEx from that deal is in the updated guidance? And then is there any way to frame kind of what the costs are that are going to flow through the P&L for that business over the remainder of the year?

Yes. Thanks for the question, Allen. So Pathway, as we mentioned in the prepared remarks, is going to add just over $2 million to our OpEx for the year. Just as a reminder, it's a six-person company. So there's not much in the way of personnel. There's a little bit in the way of infrastructure costs. But as we go forward, I would expect that to be a pretty good run rate. I would not assume much in the OpEx category from the Pathway acquisition.

The next question is from David Roman, Goldman Sachs.

This is Jamie Perse speaking on behalf of David. I wanted to follow up on a comment made regarding agency bookings, specifically about the small and medium-sized business opportunity that has shown a 100% growth this quarter. Can you provide some context on the relevant statistics, including the percentage of the agency market you are currently tapping into and the potential for growth over the next one to two years?

Jamie, it's Perry. I can actually help with this one. So on the agency partners, in short, the program is going really well. We're now at more than a dozen agency portal partners that signed on, and they've already brought us more than $5 million of business since the start of the program. So we hope to continue to grow the program. And so far, it's gone very well for us.

Okay. And then just a question on guidance and specifically OpEx priorities for the year. So your updated guidance implies about 11.5% revenue growth for the year and about 10% EBITDA growth. So really no operating leverage. You obviously delivered very strong operating leverage in the first quarter. I know there's the $2 million from Pathway embedded in numbers, but it really doesn't explain the lack of leverage in the back half. So are there specific investments across the P&L you're contemplating for the balance of the year? Just any color on how we should think about those P&L investments.

Yes. Thanks for the question. This is something we talked a little bit about last quarter as well when we were giving our initial guidance. We are definitely investing in AI this year. This is our year of AI investments. So there's going to be some incremental investments related to powering our AI solutions for our physicians. So that is costs that relate to developing functionality, content licensing, increased usage, et cetera. So that is what you're seeing as far as the expense growth. All of our AI investments are tracking to what we initially believed to start the year. We feel as though the fact that we can invest as we are in such a game changer of a solution for us that really is to become a third act and still maintain a 55% adjusted EBITDA margin really just speaks to the inherent efficiency in our business.

Ryan MacDonald from Needham has the next question.

I apologize if it's been asked already. But on the Pathway acquisition, just curious how you're planning to sort of integrate that into Doximity. Do you expect it to be sort of an extension of the core newsfeed? And then second, with the sort of strong success we've seen out of open evidence and sort of broad usage from doctors or rapid growth there, how much sort of brand awareness do you feel like you have to build with the Pathway product to maybe rebuild within physicians moving forward?

Ryan, this is Jeff. I'll take that. So yes, we're excited about the integration success we've had with the Pathway acquisition already. As we mentioned in our prepared remarks, the product has already been largely integrated. The team's been working super hard on it. I think we've got six months' worth of integration work done in just a matter of a few weeks with the great team that we've brought on there. We've got about 50 of our team engineers focused on the AI and sort of a start-up inside a start-up, bringing us a lot of growth and energy there. We are going to make it free. So we're not going to charge the $300 per year Pathway has been charging. We are putting it inside our Doximity GPT product, which already has a decent user base, as we've mentioned, with 5x growth year-on-year. That just provides one box for doctors to ask whatever type of question they have, be it clinical or administrative. We see that the AI actually does a very good job of differentiating which question type is there and giving the appropriate type response for physicians on it. We think we bought the best company in the medical AI search space. We've looked high and low, and it shows in their 96% best-in-class, 5% above others on the U.S. MOE. When you dig in a little deeper, again, having worked in this industry for a decade myself, it really boils down to having gone through and codified, summarized thousands of randomized clinical trials, thousands of clinical guidelines, thousands of drugs and doses at a discrete level. This dataset that is built for AI to be fast and accurate, we think in the long term will be the winner here. We're excited to get up every day and deliver that for our doctors. We think, again, we can build this to be the leader in the space.

The next question is from Steven Valiquette from Mizuho Securities.

Great. So we recently did some survey work with physicians that use Doximity, just to ask them, what is the #1 feature they use most on the app. And while professional physician networking was still the most widely used feature, at least in our survey, I was surprised just how fairly evenly spread the results were for the #1 spot on usage across categories like physician networking versus telehealth dialer versus newsfeed, AI running tool, et cetera. So really, the question is, I guess I'm curious how that compares to your own internal views as far as what's the most widely used? And also, do you think any one of the newer features will eventually become #1, most used feature going forward just from your own perspective?

Thanks, Steven. This is Jeff. Yes, your survey matches largely with our own internal data on the topic. We divide up our teams by product into what we call news, network, and workflow. They each have their own BP, and each of those teams are relatively evenly balanced when you look at their numbers and their resources on our end. So we do think it's a diversified platform. As we see new competitors and others come in, we see them bringing new features, new point solutions, but again, not having the ability to provide that across an identity graph and a clinical graph and ten years of knowing what each doctor treats the most and what is most interesting to them. Yes, we're pleased to have a diversified platform that is so evenly balanced as your survey indicates.

Scott Schoenhaus from KeyBanc is up next.

If we look back even just a year and certainly over several years, it appears that you have gained significant visibility into your business, which likely benefits you as a CFO. Can you discuss the measures you currently have in place, such as preparing contracts for a January 1 start date or the broader rollout of the client portal? Also, what additional steps could you take to enhance that visibility?

Yes. Thanks for the question, Scott. I'm glad you hit on that because it's absolutely correct. We absolutely have better visibility than we've ever had here at Doximity. Now I'll say a part of that is due to the stability in our clients' budgets. At the end of the day, our growth rate is always going to be underpinned by how our clients are growing. So we've seen a lot of stability there over the last year or two, which has certainly helped. But we've made great strides ourselves. You mentioned our January starts, as we push more customers towards these multi-module integrated programs, we're really excited to see the fact that they're signing up for longer deals, they're starting right away, and it's providing us a lot more visibility as we think out the next 12 months. Additionally, with our client portal, being able to see what our clients are doing in the portal has actually helped us with our visibility in the upsell cycle. I think we're just going to continue to get a little smarter there and then also continue to see more clients lean into these integrated programs that I just mentioned. We definitely believe the upfront this year will continue to be led by these integrated offerings. So more customers on these 12-month programs, definitely better for our visibility. So we're really excited by what we're seeing there.

Next up is Alexei Gogolev from JPMorgan.

You mentioned that your health system customers are surpassing expectations. Can you elaborate on the recovery you're observing in the Provider Solutions business and provide any additional insights on its current status?

Sure, I think you asked about our health system customers and their outperformance. Our pharmaceutical business is still our primary growth driver, but we have seen improvements in our health system operations overall. All three of our solutions—marketing, hiring, and enterprise—are gaining traction. Our enterprise offering has shown significant growth recently, and we have signed 17 of the top 20 health systems. There has also been strong paid adoption of our on-call scheduling tool. We are pleased with the developments in the health systems area. However, I want to caution that there is policy uncertainty affecting them. While we are cautiously optimistic about the continued success of our health system business, we are not factoring that into our guidance due to this uncertainty.

The next question today comes from Brian Tanquilut with Jefferies.

Congrats on the quarter. Maybe just curious if you can share with us what you're seeing in the curative segment. Just anything you can share with us on trends there.

Thank you for the question, Brian. You can see a breakdown of this in the other revenue section of our financials and our 10-Q. We had a strong quarter. Curative, our full-service physician staffing firm, constitutes the majority of that other revenue and grew approximately 20% year-over-year in Q1. We are definitely observing positive momentum there. We are excited about how AI can further enhance recruiting. It's important to remember that the locums industry is a multi-billion dollar industry that is growing rapidly. We believe this presents a strong long-term opportunity for Doximity.

Craig Hettenbach from Morgan Stanley has the next question.

I have a question on just the newsfeed understanding that video modules continue to gain momentum and increasingly important growth driver. Just looking for how the newsfeed is performing and any new developments there to call out?

I was just going to say, I appreciate you calling out that video is an important piece of our growth there. Certainly, clients, I think, historically, pharmaceutical companies have not had a lot of video assets that were highly engaging. AI is helping them and their agency partners create good shorter video segments that highlight a mechanism of action or some other scientific chart. We've seen those perform better in our newsfeed over time. But the main stat is what we shared in the prepared remarks, which is we had a record high number of quarterly active prescribers in our newsfeed this last quarter. Also, we've seen strong double-digit percent growth in our number of articles tapped or watched.

Got it. And then just as a follow-up, more broadly, just on the macro, kind of the 5% to 7% industry growth last quarter kind of pointed towards the low end given uncertainty. Just kind of curious, 90 days later, what you're seeing in the market from customers? And does that change any view in terms of maybe the shape of the year or not?

Craig, thanks for the question. As we sit here today, as our results obviously show and our guidance for Q2 shows, things are definitely looking better than we had initially expected. But as I mentioned in the prepared remarks, there's still a ton of runway left in the year. The policy uncertainty has not gone away. It hasn't changed much in the last 90 days or so here. It kind of remains as an overhang. While we're very encouraged that we have seen this marginal improvement over the last 90 days, our back half guidance still is going to take that measured approach to our clients' budgets, just once again, given the fact that there remains this policy uncertainty. So likely, as we kind of think about that 5% to 7% forecast range, it's definitely come up a little bit. You can see that in our guidance from what we initially expected. But we still think that's the right range to think about from a budget growth perspective.

Your next question is from Jessica Tassan, Piper Sandler.

Congrats on the acquisition. I was hoping on the Ambient Scribe technology, could you maybe help us understand the workflow? So how does the note get from the app into the EHR? And is the content of the note then pulled directly into a claim? And then also, would love to know, as your Ambient Scribe kind of prompting the doc throughout the visit to check for certain symptoms, ask certain questions or conduct certain diagnostics either for clinical accuracy or for revenue cycle optimization?

Jess, this is Jeff. I'll answer that. Currently, our 10,000 beta testers use their phone or laptop as a microphone to listen to the visit and write notes afterward. The doctor can choose any time during the visit the type of note or template they prefer. We have adopted a more open-source approach, allowing doctors to customize their own instructions and templates and essentially train their own scribe according to their preferences. This has been a significant advancement in our technology, as we've made it easier for doctors to write notes in their preferred manner based on their specialty and practice. They can also share their note templates and styles with others in their practice, enabling tech-savvy doctors to assist their colleagues. Most of our beta testers came in through referrals rather than outreach from us, indicating strong word-of-mouth growth. Regarding how this translates into the EHR, it involves a simple cut and paste, which is just one step in a larger process. Interestingly, when speaking with doctors, we find that there are already many steps involved; for instance, it takes 19 clicks to order a Tylenol in many systems, so adding one cut-paste step is relatively minor. However, we are actively discussing and working on EHR integrations to automate that copy-paste process in the future.

Got it. And then that's really helpful on Scribe. So with workflow, you obviously have the super synergistic HIPAA-compliant HCP-oriented kind of one-stop shop. On use case, do you envision the workflow suite on an iPhone kind of supporting providers in their digital visits and ambulatory settings? Or does the iPhone play just as big a role in the acute care setting? Or are we ultimately shooting for EHR integration? Just would love to understand kind of where you imagine workflow really capturing the market in the next three to five years?

Thanks, Jess. You're right that the iPhone is a key piece of technology for doctors, right? It's become their peripheral brain. That's what we called it back at Epocrates. And that was, boy, 12 years ago. It's become a bigger and bigger part of their overall practice. As they train their Scribes to write notes the way they want and use it to just ask natural language questions, which will deliver up AI-driven answers to, it will continue to be a core part of being a physician. I'd just say in terms of the long term, 5-year sort of vision, you could see it today in our iPhone app. If you go and look at the widgets that we offer, it's just the little four-square of widgets where doctors are choosing to not just have one app icon on their home screen, but four for us. The first is the newsfeed, time to catch up. The second is their Scribe, our time to record a visit. The third is the dialer, need to call the patient, starting a telehealth visit. The fourth is our AskGPT, the ask a clinical question. I do think that will be a synergistic AI suite for us as doctors again use us to do their daily workflow.

The next question comes from Stan Berenshteyn with Wells Fargo Securities.

First, on the AI Scribe. It's given away for free. Presumably, there are costs to deliver the Scribe service. I'm just wondering, if this becomes heavily utilized, are there any pressures to gross margins that could emerge into the high utilization?

Stan, this is Jeff. Yes, I'm glad you asked that because one of the limiting factors, I think we had a year or two ago with Scribe was the cost of medical-grade transcription and medical-grade, HIPAA-grade LLM use. Thankfully, for us, those costs have come down dramatically. There's been a lot of competition in the market, and our expectation is they'll continue to come down. So we're in the pennies per visit camp on this now, which is similar to where we're at with our Dialer product. We don't see the cost there being a barrier given our business model.

Great. And then a quick follow-up to Scott's question on visibility. Just tying this into the portal, it's been widely adopted, a lot of the brands already on there. The portal allows for faster ROI measurement. You have more modulation, and the type of speed you can have. Are you seeing any signs that pharma is actually using the portal to adjust their budgets like intra-quarter more frequently? Or have budgets really been steady overall, not impacted by that capability?

Yes, the majority of our pharmaceutical brands are now available on the portal. This is quite impressive considering the total number of pharmaceutical brands has significantly increased over the past year, particularly due to small and medium businesses. The sales team collaborates with clients, and the recommendations tab enables them to easily propose new deals, upsells, and address pricing inquiries. This not only enhances our conversion rates but also results in larger sales and a more streamlined sales process. Our brands continually benefit from our regular ROI updates and audience insights.

The next question today is David Larsen, BTIG.

Congratulations on a great quarter. Just how many clients are now using the self-service portal? Is it like over 80%?

I can take that one, David. Yes, it's the majority.

Okay. And then just in terms of the macro and the risk of tariffs, I think what I heard was your guide does include the risk of some headwinds. So if things come in better than expected as you progress through the year, there could be some upside, I would imagine?

Yes, I think that's a fair way to think about it, David. What's interesting right now, especially in the pharma space, is there's a lot being discussed in the way of policy changes that could be headwinds to our business or ones that could be tailwinds to our business, such as the potential DTC ban. I definitely think if we end up seeing stable budgets through this period, we could see some upside to our business. Even if I just want to make a long-term comment here, even if there are some policy changes that disrupt pharma, we have to remember that pharma companies in general spend tens of billions of dollars on sales and marketing. If anything, we believe that in a more efficiency-focused environment, while there could be some near-term disruption, our customers will lean into spending dollars on the highest ROI channels such as Doximity. We feel like regardless of what happens with policy, we are very well positioned for the long term, just given our industry-leading ROI.

Next question today comes from Jailendra Singh from Truist Securities.

This is Jenny on for Jailendra. I was curious if you're seeing any differences in spending or initiatives across customers. A lot of large pharma companies are facing upcoming LOEs. Just wondering if you're seeing that influence how they allocate HCP marketing budgets or try to maximize patient reach and engagement in the final years before that loss of exclusivity. Could that dynamic create a tailwind for Doximity?

Yes. Thanks for the question, Jenny. I think back to some of the stuff we talked about earlier. What's really unique with what we're seeing with our clients right now is how broad-based the strength is. We're doing very well at top 20 pharma. We're doing very well with mid-tier pharma and then doing very well with the long-tail SMB. As we think about where drugs might be in their life cycle, a lot of drugs continue to spend very evenly towards those end stages on Doximity. But what's more interesting, I think, is the drugs that are coming to market. A lot of these drugs are coming to market with a digital-first strategy, which is something we just hadn't seen before. They're choosing to spend more on digital than they are on their sales force. That's a huge benefit for Doximity. So as more and more of these drugs launch, we're capturing a larger share of their budget very quickly, allowing us to scale. We're in a really good position from a tailwind perspective as we continue to see innovation in the pharma market and more brands come to market.

Got it. And just a quick follow-up. I mean players across the broader pharma space is lagging mid-sized companies are relatively more stable in terms of spend and decision-making. Just from your vantage point, are you seeing a similar trend driving the momentum that you saw in the SMB space this quarter?

Yes, thanks for the question there, Jenny. I mean, we've definitely seen better stability in SMB than we've seen since, I'd say, pre-COVID. We saw a little bit of a pullback post-COVID, but mid-tier and SMB have, I'll say, kind of come roaring back here over the past six to nine months for us. That's been a really, really nice tailwind for our business. I think it's the first time back to what I mentioned earlier, it's the first time since COVID that we've seen every single aspect of our pharma business firing on all cylinders. We're really excited about what we're seeing.

Jenny, it's Perry. I'll just hop in and add. We think these SMBs are just much more keenly aware of how critical digital has become to pharma commercialization efforts, even if they don't have a massive budget. We think, hopefully, that's a development that will have stability going forward.

Everyone at this time, there are no further questions. I would like to hand back to Jeffrey Tangney for any additional or closing remarks.

Well, thank you, everyone, for joining our Q1 call. I just want to end again by thanking our entire Doximity team for continuing to work so incredibly hard to take care of those who take care of us. Thank you, everybody.

And again, everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.