Doximity stock surges on AI margins, $156.6M quarter beat
What's the deal? Shares of Doximity more than doubled at one point in overnight trading on Friday after CEO Jeff TangneyDealroom has a profile for this one. Try Dealroom → highlighted the margins on the medical platform's new AI search tool. The stock climbed more than 130% in premarket trading before finishing the day up 33%.
Why now? On the first-quarter fiscal 2027 earnings call, Tangney said the AI product earns far more than it costs to run: "We're earning more than 10 times per search in revenue than it costs." He added that AI costs should fall over time as models become more efficient.
By the numbers. Doximity reported quarterly revenue of $156.6 million and adjusted EBITDA of $74.8 million, both above consensus estimates. It also raised full-year revenue guidance by $6 million, or 5%, to between $671 million and $681 million.
What it means. Piper SandlerDealroom has a profile for this one. Try Dealroom → analyst Jessica Tassan described management's approach to AI search revenue as conservative, while Leerink PartnersDealroom has a profile for this one. Try Dealroom →' Michael CherneyDealroom has a profile for this one. Try Dealroom → wrote that the product is reinforcing confidence in Doximity's long-term margins. The company said AI search is also expanding its addressable market across health and pharma.
The short squeeze. About 17% of shares available for trading were sold short ahead of the results, according to FactSetDealroom has a profile for this one. Try Dealroom →, and forced unwinding likely added fuel to the surge. Doximity, valued at $3.7 billion before the report and down 50% for the year, now has investors weighing whether AI monetisation can create further upside.
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