Doximity Reports Q2 2027 Results with Strong AI Adoption and Raised Full-Year Guidance
Doximity (DOCS) reported second quarter fiscal 2027 results that exceeded high-end guidance, driven by significant growth in its AI-driven product suite. Revenue reached $174.5 million, a 4% year-over-year increase, while adjusted EBITDA margins hit 51%, significantly outperforming expectations. The company's expansion into pharmaceutical and health system sectors is evident, with 16 of the top 20 pharmaceutical companies now utilizing its AI Search product. Despite strong financial performance and raised full-year guidance, management highlighted critical risks regarding medical AI accuracy. A study revealed a 2.3% error rate in AI drug dose queries, prompting CEO Jeffrey Tangney to emphasize that precision remains a primary barrier to widespread adoption. However, the company maintains a robust liquidity position with $713 million in cash and no debt, supporting continued investment in AI infrastructure.
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Topics: AI Adoption Cash Flow EBITDA Margin Revenue Growth User Growth