Participants

Perry Gold; Investor Relations; Doximity Inc

Jeffrey Tangney; Chief Executive Officer, Co-Founder, Director; Doximity Inc

Anna Bryson; Chief Financial Officer; Doximity Inc

Nate Gross; Co-Founder, Chief Strategy Officer; Doximity Inc

Brian Peterson; Analyst; Raymond James

Glen Santangelo; Analyst; Jefferies

Ryan Daniels; Analyst; William Blair

Ryan MacDonald; Analyst; Needham

Elizabeth Anderson; Analyst; Evercore ISI

Richard Close; Analyst; Canaccord Genuity

Scott Schoenhaus; Analyst; KeyBanc

Allen Lutz; Analyst; Bank of America

Michael Cherny; Analyst; Leerink Partners

Anne Samuel; Analyst; JPMorgan

Craig Hettenbach; Analyst; Morgan Stanley

David Larsen; Analyst; BTIG

Jeff Garro; Analyst; Stephens

Vikram Kesavabhotla; Analyts; Baird

David Roman; Analyts; Goldman Sachs

Jailendra Singh; Analyts; Truist Securities

Eric Percher; Analyts; Nephron

Stan Berenshteyn; Analyts; Wells Fargo Securities

Presentation

Operator

Hello, and welcome to Doximity's Fiscal 2025 third quarter earnings call. (Operator Instructions)
I would now like to turn the conference over to Perry Gold, Investor Relations. You may begin.

Perry Gold

Thank you, operator. Hello and welcome to Doximity's Fiscal 2025 third quarter earnings call. With me on the call today are Jeff Tangney, Co-Founder and CEO of Doximity; Dr. Nate Gross, Co-Founder and CFO; and Anna Bryson, CFO.
A complete disclosure of our results can be found in our press release stated 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 any 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, February 6, 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 the 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 insight into the dynamics of our business. These details may be onetime in nature, and we may or may not provide updates on these metrics in the future.
I would now like to turn the call over to our CEO and Co-Founder, Jeff Tangney. Jeff?

Jeffrey Tangney

Thanks, Perry, and thank you, everyone, for joining our third quarter earnings call. We have three updates today, our financials, network growth and commercial highlights.
First, our top line, we delivered $169 million in revenue for the third quarter of our fiscal 2025, which represents 25% year-on-year growth and a 10% beat from the high end of our guidance range. Of note, our top 20 clients once again grew the fastest for us, up 122% on a trailing 12-month basis. These clients are the largest, most sophisticated pharma companies to employ entire teams of analysts to measure their marketing effectiveness. We believe our continued growth with them is proof of our value to the broader marketplace.
Our bottom line was also strong in Q3 with a record adjusted EBITDA margin of 61% or $102 million, which was up 39% year-on-year and 21% above the high end of our guidance. So just 2 years after our first quarter with nine figures in revenue, we've now achieved nine figures in adjusted EBITDA. So that's the three financial highlights: a 10% beat, a 5% raise and 61% margins.
Okay. Turning now to our network growth and engagement. Our unique active users on a quarterly, monthly and weekly basis all hit fresh highs in Q3 and with double-digit percent growth year-on-year. Our news feed usage continued to lead the way for us. For the first time ever in Q3, more than 1 million of unique active prescribers scrolled our feed to stay current on the latest news in their fields. Our workflow tools also hit new highs in Q3 with over 610,000 unique active prescribers. As a reminder, our workflow tools include our -- health, facts, scheduling and AI tools. Our AI tools grew the fastest in Q3 with over 1.8 million prompts, up 60% over the prior quarter.
Finally, for the fourth year in Doximity has earned the number one best-in-class telehealth video platform by health systems CIOs and their staff, outperforming Microsoft Teams, Zoom and many others. We're now proud to serve over 250 health systems and hospital clients and delivering telehealth care to their patients. In short, our network engagement has never been stronger. As health care shifts to be more digital, more mobile and more AI-powered, we're proud to be leading the way.
Okay. Turning now to our Q3 commercial highlights. We're pleased to report strong calendar year-end sales, led by three initiatives: our new products, integrated programs and client portal. First, our new point of care and formulary products grew over 100% in Q3, generating over 20% of our pharmaceutical sales. As a reminder, these modules appear outside of our news feed and represent entirely new inventory for us.
Second, with our newer integrated programs, clients can leverage our data science to create a custom tailored dynamic approach for each doctor. For example, some doctors prefer scientific deep dives on Monday evening. Others prefer bullet point guidelines in between patient visits, letting our clients personalize and optimize their campaigns across our many modules helped us grow our program sizes in Q3.
Finally, our client portal is weaving all of this together by providing our clients a single trusted place to test strategies and see their results. Our seamless third-party prescription data gives our clients real insights and proof of impact solidifying our role as a strategic partner. Now as we've said before, our client portal is a multiyear initiative.
Today, over half of our brand clients have access. Our plan is to add all of our clients in 2025. We also added agencies to the mix last quarter, signing 10 as portal partners. We'll do our inaugural training summit with them in New York later this month. Together, we're excited to bring consumer-grade marketing tools to health care.
Okay. I'd like to end by thanking my Doximity teammates who continue to work incredibly hard to realize their mission to better health care. I personally have never been more excited or more proud about what we're building together.
And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Anna Bryson

Thanks, Jeff, and thanks to everyone on the call today. Third quarter revenue grew to $168.6 million, up 25% year-over-year and exceeding the high end of our guidance range. Similar to prior quarters, our existing customers continued to lead our growth. We finished the quarter with a net revenue retention rate of 117% on a trailing 12-month basis.
Our top 20 customers remained our fastest growing, with a net revenue retention rate of 122%. We ended the quarter with 114 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis. This is a 21% increase from the 94 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 third quarter was 93%, flat versus the prior year period. Adjusted EBITDA for the third quarter was $102 million, and adjusted EBITDA margin was 61% compared to $73.3 million and a 54% margin in the prior year period. This represents adjusted EBITDA growth of 39% year-over-year as we continue to run a very profitable business with high incremental margins.
Now turning to our balance sheet, cash flow and an update on our share repurchase program. We generated free cash flow in the third quarter of $63.4 million compared to $48.7 million in the prior year period, an increase of 30% year-over-year. We ended the quarter with $845 million of cash, cash equivalents and marketable securities.
During the third quarter, we repurchased 19.2 million shares at an average price of $48.62. 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 December 31, we had $451 million remaining in our existing repurchase program.
Now I'll turn to a recap of our annual buying season. As a reminder, our December quarter represents our largest sales quarter by a significant amount. This is what our farm customers sign on for next year's programs, committing the majority of their annual marketing budgets in what are called upfront contracts. While we signed these contracts in Q3, we will primarily recognize revenue over the next 12 months, depending on the timing of program launches.
This upfront season, our clients continue to expand their reach across our entire platform. Our modules that sit outside of the news feed, point of care and formulary grew by more than 100% year-over-year combined. We also sold a large number of programs on a multimodule integrated basis, which contributed to much larger deal sizes. Brands buying these integrated offerings grew more than twice as fast as brands buying our modules on a stand-alone basis.
Finally, our upfront season demonstrated that there is still plenty of room for growth among our hundreds of pharma brand partners. We increased the number of $10 million-plus brands to $4 million and had our first ever $15 million-plus brand. With record prescriber engagement and continued commercial product innovation, we see ample runway to further scale our partnerships over time.
Now moving on to our outlook. For the fourth fiscal quarter of 2025, we expect revenue in the range of $132.5 million to $133.5 million, representing 13% growth at the midpoint and we expect adjusted EBITDA in the range of $62.5 million to $63.5 million, representing a 47% adjusted EBITDA margin.
For the full fiscal year, we now expect revenue in the range of $564.6 million to $565.6 million, representing 19% growth at the midpoint. This is an increase of roughly 5% or $28 million at the midpoint after outperforming our Q3 guidance by roughly $16 million. We now expect adjusted EBITDA in the range of $306.6 million to $307.6 million, representing a 54% adjusted EBITDA margin. This is an increase of roughly 11% or $31 million at the midpoint after outperforming our guidance Q3 by roughly $19 million.
Our increased annual outlook is due to a variety of factors. First, our pharma year-end upsells materially outperformed driving stronger than anticipated Q3 revenue. Second, our annual buying cycle exceeded expectations due primarily to new product traction and larger multi-module integrated programs. Finally, the structure of these integrated programs led to a higher percentage of January launches than prior years.
These programs are contracted to start at the beginning of the year with the client's first content approved module. While we're excited to help our customers go live faster, this launch efficiency also means annual upfront sales are converting to Q4 revenue at a faster pace. As a result, more of our upfront sales will be recognized as revenue in the current fiscal year than in years past.
Looking ahead, we expect the pharma HCP digital market to continue to grow roughly 5% to 7%. While we will provide our fiscal 2026 guidance in May, our goal remains to grow ahead of the overall market. Given our strong competitive positioning and record engagement, we believe we are well positioned for another year of share gains.
With that, I will turn it over to the operator for questions.

Question and Answer Session

Operator

(Operator Instructions)
Brian Peterson, Raymond James.

Brian Peterson

Thank you. Congrats on a really, really strong quarter. So I'd love to get any perspective on the 50% of customers that you have on the portal today that aren't on the -- versus those that aren't on portal. Is there anything that you could say about how they're kind of midyear and end of year buying patterns compared to those that aren't, in any commonality in terms of what you saw in terms of their volume into fiscal year '26?

Jeffrey Tangney

Hi, Brian. This is Jeff. Yes, great question. As we said in our last quarterly earnings call, we have seen higher growth from our portal clients and continue to do so. So yes, it's about half of our clients that we've trained on it today. And again, we expect to roll out to all of our clients this year, rolled out to our entire sales and service team just a couple of weeks ago. So we're excited to have the portal out in the hands of more folks because it allows them to see our return on investment on a monthly basis, right? We're pulling in the IQVIA data that shows them their share lift and their results and allows them to strategically look at what's working, what's not working and make more course corrections along the way. So I hope that answers your question.

Brian Peterson

I appreciate the color, Jeff. And maybe, Anna, I wonder you just the 60% or I guess, 61% EBITDA margins this quarter, obviously much higher than expected. Any way to help kind of balance our models in terms of how you're thinking about generating incremental profitability versus investing in growth.

Anna Bryson

Yeah. Thanks for the question, Brian. So as you noted, we did have a very strong quarter in Q3 with material upsell outperformance. And given the nature of our business model, almost all of that -- line out performance flows through to the bottom line. So I would not take that 1 quarter and think we're a 60% plus margin business now. And similar to revenue, there are quarterly variations to EBITDA. So we encourage you to look at our annual EBITDA margin as the best representation of our business, which is at -- sorry, [ 54% ] for this fiscal year.

Operator

Glen Santangelo, Jefferies.

Glen Santangelo

Yeah, thanks for taking my question. Hey Jeff, I think we're all trying to figure out what's really driving this momentum? And I think in your prepared remarks, you said that the new products drove 20% of your sales this quarter, if I heard that correctly. And what I'm -- but I guess what I'm kind of curious about is when you think about these new products and these multi-module integrated programs, is that really what's driving the strength?
Or is it more the fact that you're rolling the portal out to these your brand partners, obviously, these agencies and maybe that's where we're seeing uptake. And I'm guessing it's kind of a combination of both, but if you could in any way sort of elaborate on those two dynamics and how they're contributing to your operating momentum, I think that would be helpful.

Jeffrey Tangney

Thanks, Glen. No, it's a good question. And I think it is -- it's a one- two punch, I think, that we have here, where during the midyear where budgets are smaller and clients want efficiency, I think our portal really shines. It's easier to transact and do a $100,000 quick program with us through our portal. But at the end of the year, we've always done well because that's the one time a year that clients sit down and they have their half-day budget planning and partnership meetings, and they look at their return on investment which we traditionally have performed very well, and they make their big longer-term commitment.
And I think our integrated programs did particularly well during this past year-end budget cycle, because our clients realize that we have a lot of insights to doctors. And when they work from home and what types of content they prefer? Are they like acronyms referring to studies? Are they more nerdy? Or do they just want a quick skin of the guidelines and the changes?
So we did our pharma advisory board last May, and I remember the top voted item coming out of that advisory board with 40 of our clients, top clients there was to help them with these integrated programs and help them optimize, use our AI, our machine learning to go and optimize their programs for them. So the short answer is, I think our portal is helping most during the upsell season and our integrated programs really helped a lot during this last upfront season.

Glen Santangelo

All right, thanks for all the details and congrats and team.

Operator

Ryan Daniels, William Blair.

Ryan Daniels

Yeah, thanks for taking the questions and congrats on the outstanding quarter, Anna, maybe one for you. You talked about the larger multimodal integrated programs launching near the start of the calendar year. Curious how that might change the seasonality of revenue recognition. I guess I don't want to get too far ahead of ourselves in our models as it seems like this could change the cadence of quarterly sales a bit versus what we've seen in the past. So any color there?

Anna Bryson

Yeah. Thanks for the question, Ryan. And I'll take the opportunity also here to talk a little bit more about how these programs work. Jeff just hit on it a little bit. But as you said, our clients expressed an interest in a more flexible and dynamic offering to optimize their programs across our multiple formats and channels. And so we just started trialing some of these multi-module integrated programs last upfront season, which we talked about, about a year ago.
But this year, we rolled out these offerings to a much larger number of our top clients, and we saw a really great traction. And so as far as visibility is concerned, these programs are typically 12 to length. They're contracted to start in January and the contract is to start with whichever module has the first available content.
So for example, if a client is buying an integrated program with news, video and point of care in it, and both the news and video modules have preapproved content, but the point of care does not, we'll start their program by launching and optimizing the news and video modules while we work on that point of care content in the background. So our customers love the speed to launch. They love the multimodule flexibility this provides.
And then for us, we obviously love the larger and longer deals, the better revenue predictability. It really is a win-win across the board. For seasonality, I think as we move more customers into these programs, we could certainly see a more consistent revenue curve year-to-year than we've seen over the past few years. And that's definitely our aim as we continue to sell these programs over time.

Ryan Daniels

Okay. Super helpful color. And then as a follow-up maybe for Jeff or Nate. We've seen a lot of data recently about NPs and PAs really starting to write as many as if not more script physicians. So I'm curious if you can talk a little bit about how you target that market? I know you've launched NP Navigator in October. But just more broadly, how do you target NPs and PAs and is that a big growth opportunity or are you already capitalizing there? Thanks.

Jeffrey Tangney

This is Jeff. I'll answer that question. So we've announced we're over 60% of all new practices in the country as members. And we're proud of our growth there. In fact, it's one of our internal growth goals this year to keep growing that percentage. We just hosted out here our first-ever nurse practitioner Advisory Board, where we had over 100 NPs in to come in and tell us about what they want from our product. I will bore you with all of it, but I will say they love our workload tool.
The ability to call patients from their cell phones from wherever they are, the ability to handle factors with the pharmacy, the ability to use our GPT to write patient prior off letters, all these things, they are really strong users of and we've done very well with them. Interestingly, they're a little less proud of their resumes, the CDs. So the more LinkedIn style functionality, I think, is not as frequently used by them. But again, our workflow tools have been really popular, and we look forward to more growth there.

Ryan Daniels

Great, thank you so much.

Operator

Ryan MacDonald, Needham.

Ryan MacDonald

Thanks for taking my questions, Ryan on for Scott. You have consecutive quarters of 100% plus year-over-year growth on point of care and formulary. Can you just talk about sort of the runway here for these products? And maybe what the penetration looks like, the most recent couple of strong orders here within the overall customer base? Thanks.

Anna Bryson

Sure. Thanks for the question, Ryan. And yes, as Jeff mentioned in the prepared remarks, we saw 20% of our -- from new products in the quarter. So we really are starting to see very strong traction there with consecutive quarters of over 100% year-on-year growth. Even with that, I do think we are in the early innings of this opportunity. Between the engagement we see in our workflow channels and the unmonetized white space. We firmly believe that our workflow modules could become on par with our new speed over the next 3 to 5 years and definitely a key driver of our incremental growth.

Ryan MacDonald

Excellent. And then maybe as a follow-up. So you noted 10 new agency partners that have been signed up and the training for those has just going to start here in the next few weeks. How should we think about the continuing of the ramping process not only of sort of getting those agency partners trained and sort of kind of more actively using the pool, but then the sort of the magnitude of the ramp of adding incremental agency partners as we look ahead into fiscal '26. Thanks.

Jeffrey Tangney

Yes, this is Jeff. I'll take that. Yes, I look forward to our summit coming up in New York City to go through this with our agency partners. And yes, they're excited to come too because we make them look smart. I mean, all else equal. We're giving them insights that really do help inform their strategies and be more strategic with their end clients, which is a win-win really all around.
I can share on the last call, we shared that we had referrals in with 6-figure new clients. That continues, and our SMB growth over this past quarter was stronger than it had been previously. So some of that we do credit to these AC partners. And in fact, just a couple of weeks ago, we had one of these agency partners bring us a new $0.5 million client, which is great to see. And again, from our view, this is just us helping our agency partners look smart, helping them be more creative, develop better creative.
And most of our content is being created in the portal, and so we're really creating, I think, a more seamless less e-mail-centric way of working with our partners. So we're excited to do more of that. And I think down the road, you're right. There are -- there's the big 7, now it's the big 6 major agency out there. There's lots of smaller agencies that serve the medical space well. I don't know exactly how many we will have on our portal in program in a year, but it will certainly be more than the 10 we have today.

Ryan MacDonald

Excellent, thanks. Congrats again.

Operator

Elizabeth Anderson, Evercore ISI.

Elizabeth Anderson

Hey guys. Congrats on the nice quarter and thanks for the question. Maybe a follow up to the last one, like how do you kind of see that sort of agency, non-agency direct clients split evolving over time. I mean honestly, obviously, it's still fairly early days, but just sort of any early learnings you can help us point to that direction to kind of understand the longer-term opportunity there.

Jeffrey Tangney

Yeah. Thanks, Elizabeth. So to be clear, none of these agencies are resellers. We're not letting them do any principal buying or some of the other things you might hear with others. We still maintain a direct relationship with the clients. And again, we have that strategic table as they're thinking about their -- what they call their HCP, their health care professional strategy message.
But I do think there's a lot of data that we can use to help inform, again, their creative folks who are experts in their clinical areas. And again, I have this is where I think they look to us to provide them data insights and we present to them to provide us new intros maybe to that longer tail of clients that are hard for us to reach on our own.

Anna Bryson

It's very helpful thank you.

Operator

Richard Close, Canaccord Genuity.

Richard Close

Yeah, thanks for the questions. Congratulations on a great quarter. Jeff, I was wondering if you could give us any updates. Obviously we got the point of care and the formulary here, these new products, but any thoughts on future roadmap of products? And then I had a follow up for Anna if you could talk about AI internally, how that's driving margins.

Jeffrey Tangney

Sure, thanks, Richard. This is Jeff. I'll answer it by saying AI as well. So we're really proud of that 1.8 million prompts we did last quarter, up 60% quarter-on-quarter. And, we're about to host our 150 physician medical advisory board here in a few weeks. And as I look at the docket of the new product ideas we're going over with our physicians, there's a lot of excitement about what AI can do to help doctors save time, provide better care. And so we're really leaned in on that, and I think that's an area where today we have, zero monetization, and a lot of opportunity. Anna.

Anna Bryson

Hey, Richard, thanks for the question on AI. Yeah, we do believe AI has helped facilitate margin expansion for us that proximity. We've definitely been leaning into it internally, for a year or two now. Just for some examples for GNA we're utilizing AI for sales forecasting, data entry, scanning contracts, etc.
R&D team uses AI turbocharge programming. They use it for knowledge sharing data.
And just all in all, we think about AI is very additive to our overall team, and we're very fortunate that our team is really embracing it. So it definitely has been a factor in the marginal expansion we've seen over the last year to 54%.
Okay, thank you.

Operator

Scott Schoenhaus, KeyBanc. Scott, perhaps your line is on mute.

Scott Schoenhaus

Sorry about that. Congrats on the momentum. I believe you noticed 10 million-plus brands to 4 million plus brand -- module integrated program side. So how should we think of the revenue opportunities on your platform going forward from these launches, meaning should we see larger budget unlocks throughout the year our -- selling revenues versus your past. Thanks.

Anna Bryson

Scott, I apologize, you were cutting out a little bit. Do you mind just quickly repeating the question?

Scott Schoenhaus

Sorry, My question basically is you have now all these larger and larger multimillion dollar brands. You just announced another first ever 15 million plus brand. How should we think about the revenue opportunities throughout the year and the budget unlocks both in the midyear and at the year-end versus years past?

Anna Bryson

Sure. Happy to talk a little bit more about our larger brands. Just to put this in context, too, as a reminder, we had our first ever 10 million-plus brand only 2 years ago. And so now today, we have 4 million, 10 million plus brands and -- ever 15 million-plus brand. So we certainly, every year, continue to reach in milestones with our brand partners, and we see no limit yet to how much a brand is willing to invest to Doximity. As far as what this means for upsell season and the rest of the year, I think it's just way too soon for us to tell. We certainly had a strong upfront, and we had strong upfront commitments, especially with regards to our integrated programs. It's just too soon for us to comment further as to what this could mean for the upsell season.

Operator

Allen Lutz of Bank of America.

Allen Lutz

Good afternoon and thanks for taking the questions. One for Jeff or Nate, you talked about the 1.8 million AI prompts that was up 60% quarter-over-quarter. Could you just walk through an example or two of what these AI prompts are doing, how doctors are using tools. And then is there any way you can quantify maybe how much this is adding time to how much time doctors are spending on the platform?

Nate Gross

Hi, Allen. This is Nate. Yes, we had 1.8 million prompts submitted in the last quarter by doctors, which is the number we're excited about as it continues to grow. And we've become a leader in the applied AI in the clinical setting space. And as we continue to invest, we're excited about what's possible. So when we've surveyed our doctors, they told us that they think they can save around 13 hours a week using AI tools. And that's a pretty massive unlock or really salvation as their workloads only continue to increase.
So what exactly are they doing? Well, so far, our tools are already assisting with things like answering common questions that patients might have letters for patients, insurance companies has been a big hit, having letters improved processes like prior authorization appeals, colleague communications. Even at certain times of year first drafts of letters of recommendation for trainees.
And when we ask doctors what they want to prioritize, it's no surprise that their top interests are around things that have to do with reducing administrative burden because there's a lot of time continuing tests that these doctors have to do that today is just paperwork and faxing. And those are the kind of things that not only can we help them generate but we can then connect into our existing workflow efficiency tools like faxing so that it can involve to entirely new use cases as our members still with us.

Allen Lutz

And then one for Anna. In the prepared remarks, you talked about the digital market is still growing 5% to 7%. As we think about the results that you've put out over the past two or three quarters, has the end market improved at all? Or is Doximity just taking more share here. Really trying to understand if the market even modestly is improving? And just kind of can you talk about what you're seeing there at kind of the market level?

Anna Bryson

Sure. Thanks for the question, Allen. Yes, as we've looked at market growth over the past few years, we've definitely seen a lot more stability. When we think about that 5% to 7% range that we gave for calendar year 2024, it's likely probably on the higher end of that range. We certainly did see a little bit of marginal improvement, but the majority of our outperformance was due to share gains. So we were able to take quite a bit of share. I think there was a little bit of a flight to quality this year, and we were able to really provide our clients with better insights, ROI and audience analysis there a portal and our new products really started to take off.
So I would say the majority of our growth this year was led by share gains. In fact, we outperformed the market likely by about 3 times this year, which if you look at historically where we've seen outperformance, it's typically been closer to 2 times. As we look ahead, the level of outperformance we saw this past year is not something we necessarily expect to continue. A lot of things would really right for us this year. But we think it's a little bit more of an outlier as opposed to the norm. We think it's probably more likely that going forward, we'll see something more like our historical norm of 2 times the market growth rate.

Allen Lutz

Great, thanks Anna.

Operator

Michael Cherny, Leerink Partners.

Michael Cherny

Thank you for taking the question and congrats on a great quarter. Maybe if I can build on Allen's question and ask the forward-looking question actually asking for '26 guidance. When you think about what you saw in '24 and the flight to quality dynamic. How much of that do you think was also macro oriented by the volatility in certain channels changing? And as you think about where we sit right now with the potential for a head of HHS that is anti-DTC advertising, some of the other macro elements moving around on you. How does that factor into where you see the puts and takes both on market growth and your positioning within the market?

Nate Gross

This is Nate. So what I can say about B2C effects is it's still early. There's a lot of things that have been said, but priorities with a clear path to implementation have yet to be set. So some of the talk that has bubbled up on D2C or TV advertising, could be less likely is in terms of a full ban because there'd be a lot of hurdles to overcome. A lot of middle ground regulations thus far seem like they could be more feasible such as conversations around pricing disclosures and transparency around pricing in D2C advertisements.
But in general, I think a lot of what's being discussed will poll -- well with doctors. Doctors don't like being on the receiving end of a lot of requests that have come from commercial. That said, I think from administration strategies, again, it's just too early to make calls, and we're not basing our strategies on hopes of administrative change. We're just focused on what we do best today with our clients.

Anna Bryson

Thanks.

Operator

Anne Samuel, JPMorgan.

Anne Samuel

Hi. Thanks so much for taking my question and congrats on the outstanding quarter. Just one kind of thinking longer term, as you look at the white space for monetization across your platform? Are you able to penetrate that with the resources that you have today? Or will it require any incremental investment? Just thinking about the massive incremental margins in the model that you're seeing lately.

Jeffrey Tangney

Thanks, Anne. This is Jeff. Well, as Anna has already said, we're very proud of the opportunity we've opened up with our workload products. And we think that, that opportunity is as big as our core news feed product. So we do think that that's still a lot of white space as you say, for us to go after -- with the team and relationships that we have, yes, absolutely. I think we work with all the top 20 pharma. We work with all the top 20 hospitals, and we continue to show good growth within them.
I do want to make one clarification about my comments in the pre-record, which was we said we had an NRR or a net revenue retention rate of 122% with our top 20 clients. That is 22% growth over last year, up 122%, that growth over last year. So I just want to make sure I clarify that. I think it's clear from Anna's comments, but I want to make reclarify that. But no, I think we are well positioned to be the partner of choice for reaching health care fashionable. And that's a very large market that we still think we're in the very early innings of.

Anne Samuel

That's really helpful. And if I could just sneak in one more. I was just hoping you could give us an update on the health of the provider business, how that's trended?

Anna Bryson

Yeah. Thanks for the question, Annie. So as we said before, our pharma business does remain our fastest-growing business and is responsible for most of the upside that we've seen this year. But our health system business is performing a little bit better than initially expected to start the year. So we do believe we've seen a marginal improvement in that market over the past 9 months.
We see a little bit of a pickup as well in our new business sales. But that industry still isn't really out of the macro uncertainty. So we aren't expecting a material change growth on this cohort in the near future. We are still expecting our pharma business to remain our fastest growing.

Anne Samuel

Thanks very much.

Operator

Craig Hettenbach, Morgan Stanley.

Craig Hettenbach

Thanks. We have been hearing positive feedback on the video module front. So Jeff, just taking a step back, I mean, the product initially got off to a slow start and appears to be accelerating nicely now. Can you just touch on just things that you've refined and what's resonating that's driving the momentum on the video side?

Jeffrey Tangney

Yeah. Thanks, Craig. It's a good question, too. As I step back and look at it, within a highly regulated industry like pharmaceuticals, it's not uncommon to see sort of an S-shaped adoption curve for new products, right, where you have five trialists who will stick their necks out and go through the legal review and try something out. And then everyone else sort of sits on the sidelines and they wait for a year, and they wait to see what their ROI looks like and whether or not what they didn't actually worked.
And candidly, I think that's what happened with our point-of-care modules and our formulary modules, which are great products, right? It's, I think, really helpful to tell a doctor right as they're waiting for the patient to join a visit, whether or not their formulary, their basically insurance coverage will cover your client drug, right? That's a really actionable moment, and again, we've seen really strong ROIs from the moment and also strong loss rates there.
So while it's taken a little while, I think, for us to get to that second hump in the S-curve where people are comfortable with it from a legal perspective that vertical video that we launched a couple of years ago, I think it's really having its moment. And again, as Anna said earlier, we think this could be as big when we look at the return on it for our clients as our core new seed business.

Craig Hettenbach

Helpful color. Thank you.

Operator

David Larsen, BTIG.

David Larsen

Hi, congratulations on the very good quarter. When we look at like the CROs like IQVIA reported this morning, they are talking about a 50% year-over-year increase in cancellations of clinical trials. When you look at some of like the large biopharma companies, they're talking about reducing costs, reprioritizing different clinical trials, they're facing challenges because of the Inflation Reduction Act and also changes in Part D reimbursement, having pressure on them.
So it seems like across the CRO space, like the sector parts of it seem to be under a lot of pressure. Now we look at your results and they're fantastic. Can you just explain what is going on? I mean, is it the pressure that they're under that's causing them to invest more in commercial efforts? Just any thoughts there would be very helpful.

Nate Gross

Hi, David. This is Nate. So one thing I'll note is that the iShares US pharma ETF, which is sort of a barometer for the US pharma companies, it's up around 7% year-to-date. So pretty -- some optimism in the market there. We typically work with brands that are at the launch stage or the early stages post launch. Maybe we start those strategic conversations pre-launch. But we're not typically involved in helping these businesses at their Phase I or Phase II stages of trials. So businesses that help run trials in the very early stages would be definitely seeing different types of effects in different cost and we would.
So with regards to the Inflation Reduction Act. Again, it's still early with it -- to the new administration's priorities around it. I think some experts feel a bit -- any sort of repeal seems unlikely because it is a path to free up a few hundred million dollars. But if you look at the scheduled IRA cuts, a lot of the drugs affected, and this is calendar 2026 mind you, are already in a pretty late stage.
So when we went and analyzed the first 10 drugs announced, we found that the affected brands were really just a low single digit percentage of our revenue. Because, again, we work with launch and grow drugs more than this stage -- and even while pipelines continue to shift with different science, regulatory changes, there's still a lot of exciting medicines in the pipeline that will be potentially launching growth partners for us.

David Larsen

Okay. Great. And then without [ sync ] trade secrets or anything like that, it seems like your ability to develop new products and modules is contributing to your growth. Can you size how much revenue is coming from formulary and point of care. And then just any sense for how many sort of new products are in your pipeline, like will you introduce maybe 1 or 2 per year. Just any color or thoughts around that would be helpful.

Jeffrey Tangney

Yeah, this is Jeff. I'll answer that. Yes, we've said that our point of care is 20%. So I think you could size against our overall revenue for that. And our AI products, again, which we have not monetized all, I think, are a similar-sized opportunity eventually and perhaps even bigger down the road. And we're excited at our Medical Advisory Board to get together with our 150 doctors here and work on those more. They are trade secrets. So we don't like to talk about our new physician products because, of course, we think we've got some better shot on goal there than others have. And we've got a team that I think has constantly shown that we can innovate in ways that doctors really appreciate. So we hold that close to our best.

Jeff Garro

Thank you.

David Larsen

Thanks very much. Congrats on a good quarter.

Operator

Vikram Kesavabhotla, Baird.

Vikram Kesavabhotla

Okay, great. Hey, thanks for taking the question. I just wanted to follow up on some of the previous questions around the industry trends now that you're through another upfront cycle. Do you think that 5% to 7% growth rate is the new normal for this industry long term? Or do you still think that can accelerate at some point? And based on the feedback that you're getting from customers what do they need to see in order for that growth rate to move higher on time? Thanks.

Anna Bryson

Thanks for the question, Vikram. And it's something we talk about a ton internally and with our agency client partners, the 5% to 7% we're seeing today, I think, is a little bit of an effect of the macro circumstances that we're in. and the place that pharma is in their shift to digital. So if we're just going to take a massive step back, pharma is still only spending about 30% to 35% of their budgets digitally. You compare that to other industries, other industries are at 70% plus. So pharma certainly still very under-indexed. So we could see a world in which that growth rate does increase. I think for right now, just given the generalized uncertainty, we're not seeing it today. But given how under index pharma is on digital, I do believe we could see a world where that growth rate does go up. We just don't know when that's going to happen yet.

Vikram Kesavabhotla

Okay, great. Thank you.

Operator

Jeff Garro, Stephens.

Jeff Garro

Yeah, good afternoon. Thanks for taking the question. Maybe going back to the topic of more launches in January and that kind of quick turnaround from the upfront selling season. That implies that medical and legal review is becoming less of a challenge. So I wanted to ask if anything has changed from a compliance perspective? Or are we just witnessing strong execution and the flexible approach of those integrated solutions serving as a work or two NRR barriers?

Anna Bryson

Yeah. Thanks for the question, Jeff. And absolutely right. We did see a large increase in January launches compared to our prior years, which we're really excited about. Our goal is always to help our customers gain channel as quickly as possible to maximize their ROI. And we're really pleased in which our integrated programs are allowing them to do that by starting with whatever module has content pre-approved. Most of our brands that have been working on for a while will have at least one module with pre-approved content.
So that's been really a game changer for us in getting our clients live faster However, though, I do want to make sure to note when we do see changes like this in launch time lines, we also see changes in revenue growth. So this higher percentage of January launches are contributing to a couple of points of growth upside in fiscal 2025 for us, which theoretically could lead to some tougher comps as we move ahead to fiscal '26.

Jeff Garro

Thanks.

Operator

tephen Valiquette, Mizuho Securities. Your line is open. Steven, perhaps your line is on mute?
David Roman, Goldman Sachs.

David Roman

Thank you and good evening everybody. I wanted just to come back to the net retention revenue growth, which obviously continues to track at 20% and it's been at this level for a fairly sustainable period of time. But we're seeing total top line growth at a pace that is exceeding that and accelerating. So can you maybe help us understand some of the drivers outside of those top customers? What is contributing to some of that incremental performance between the NRR and the largest customers and then the total top line growth? And how we should think about sustainability of those drivers on a go-forward basis.

Anna Bryson

Thanks for the question, David. And yes, we've certainly seen stability in our NRR over the past 12 months. And particularly the last two quarters, we did see a slight reacceleration in our overall NRR which we think is a really good sign that we continue to find additional ways for our existing customers to expand their program such as adding on point of care modules or adding on NPs through our portal. And we're really encouraged that we're able to continue to grow within our existing customers.
Now as far as what Jeff had mentioned earlier, we're also seeing a little bit more growth come from SMB than we had seen historically. And what's great about that is our continuing to grow at all angles of the funnel here, so the top of the funnel and the bottom of funnel of these customers. And I think will likely continue to see that over time, especially with our client portal. So as far as future of NRR just between a couple of moving pieces here with continued growth amongst our top customers, but then also SMB traction. It's just too soon for us to give a specific number. but we don't really expect a material change from kind of what we're seeing here today.

David Roman

That's helpful. And maybe just a follow-up, and this is not a question about kind of comps going forward. This is more trying to get at some of the underlying drivers that are supporting the accelerated performance here in this fiscal year. Where would you say we are in the life cycle of some of those drivers? I know, Jeff, you talked a little bit about the S-curve or some of these things. But -- maybe you could just go into a little bit more detail on how you think about the improved growth you're seeing this year? And as you think about those factors, where are we in kind of the evolution of each of those drivers?

Jeffrey Tangney

Hi, David. This is Jeff. I'll speak to that. Yes, where are we? The short answer is we're doing really well. I think this past year, if we really boil it all down, we've demonstrated to our clients the context matters, right? That being in a clinical context where doctors are in clinical decisions really does matter, in the ways that you reach them. And folks who are finding ways to put up video games doctors, households or whatever else aren't doing as well, aren't having the results.
And I think there was a lot of trialist behavior maybe in the last couple of years around some of those newer technologies. But candidly, they don't work, right? At the end of the day, context does matter. I think we will continue to deliver a highly credible high-integrity clinical context for our physicians.

David Roman

Thanks so much.

Operator

Jailendra Singh, Truist Securities.

Jailendra Singh

Thank you and thanks for taking my question. So just following up on the last response. I'm trying to put a finer point on your comment earlier on your likely growing at 2 times the market growth rate going forward and 3 times you grew this fiscal year. Does that mean that for you to feel comfortable about being back to like sustainable, high teens, 20% top line growth, you need market growth to accelerate from current levels? Or do you think you have enough products and tools in pipeline to keep driving engagement and deepening your pharma partnership, which would get you to that sustainable high teens, 20% growth going forward.

Anna Bryson

Yeah. Thanks for the question, Jailendra. And as I mentioned before, if we do look back historically, say, taking out this year, if we look back over the past 4 years, we do typically outperform the market growth rate by somewhere closer to 2 times. And as of right now, our best estimate is that's a better proxy going forward for our car business. I think this year, we had an opportunity to accelerate share gains after a softer fiscal 2024. And we're really encouraged that we saw that happen.
But going forward, we're just in a place where we believe we'll see more of consistent share gains. As far as if we have the tools in place to continue to grow faster than the overall market, we absolutely believe we do. I think we still have a ton of opportunity with point of care and within our portal, but we just don't know if that seed growth quite as accelerated as we saw this last year. It's not what we're assuming for next year.

Jailendra Singh

Okay. And for a follow-up, I want to go back to the difference between what you are seeing from pharma partners who are on your self-serve client portal versus those not on the portal. Any data or color you can share around engagement, ROI or new programs or upsell between these two sets of pharma clients? Just trying to understand the incremental opportunity you guys might see after you roll out portal across all your clients and can also like that, can you confirm if you're 4 million, 10 million plus brands and first 15 million plus brand are those 5 pharma customers all on your self-serve portal?

Jeffrey Tangney

Thanks, Jailendra. This is Jeff. So yes, I should clarify one thing about the portal. People refer to it as self-serve. The reality is that it's still -- our clients are able to self-serve and go and see reports and whatnot. But to protect the end user experience I've requested and we will hold the line, we will not have new clients up on our website with a credit card from some more we don't know. We are still going to vet every client, and we are still going to review every program that they put out there, again, to protect the physician experience, we don't want things that are, frankly, not clinical, not garish, they're very native in our approach.
In terms of talking about clients who are in the portal for -- I don't know offhand for those top 4, I think they're all on the portal, but I'm not positive. I can tell you that, again, it's our plan to roll this out to all of our clients this year. It really is a training process, and you need to show them and it takes time for us to walk them through the different parts of it and make sure they understand all the data definitions and the IQVIA data. And there's a little bit of tweaking because the way they define their IQVIA market might be different in every case. And so we want to make sure that aligns with their internal definition. So it does take some time for us to get new clients on to the portal. But again, it's our goal to get really all of them there this year.

Jailendra Singh

Thanks. Congrats on strong quarter.

Operator

Eric Percher, Nephron.

Eric Percher

Thank you. On the question on visibility in the financial model. And I think over the last year, you talked about customer discipline plan around budget flush is a factor. And then we thought workflow might drive longer launch, multimodal seems to drive improved visibility for next year. So let me ask you, you put all of these items together, how do you feel around the visibility you have now looking forward relative to a year ago? And then as we get into a new year, is it that you've gained a lot more visibility on the first 3 quarters, but there may be even more dependence on where you ultimately end up in Q4?

Anna Bryson

Thanks for the question, Eric. So just as a reminder, when we started last year with our initial guidance, we had over 70% of our subscription-based revenue under contract. When we give our guidance in May, we don't expect visibility to look materially different than how it looked when we started last year because there's a bit of a push and pull effect at play with these integrated offerings.
So they certainly led to large deal sizes, which would imply more booked upfront and the stronger visibility into next year but they also launched in January, which led to a little more revenue recognition in the current fiscal year versus the next fiscal year. So because of those two connectors, the push and pull there, as of now, we feel visibility is looking pretty solar last year. And just given this past year's performance, I think we feel very comfortable with the strength of our visibility into this business.

Eric Percher

Appreciate it.

Operator

Stan Berenshteyn, Wells Fargo Securities.

Stan Berenshteyn

Just two quick ones for me. First, on the 15 million brand, what is the anticipated time frame for the campaign go live on that one? And then on the share gains that you called out, do you have a sense of who's on the other side of the share gains that you're experiencing?

Anna Bryson

Hi, Stan, thanks for the question. So that 15 million plus brand that we mentioned, did buy one of our integrated packages. So that brand is already live on our channel. As far as where we are seeing the share gains, it's not something that we typically talk too much about when it comes to competitors. I think we are really pleased to have the platform that we have and the interest from our clients. And I think our results just show that we're the place that our clients want to spend their incremental dollars.

Stan Berenshteyn

Great. Thanks so much.

Operator

That is all the time we have for questions. I will turn the call to CEO, Jeff Tangney, for closing remarks.

Jeffrey Tangney

I start by thanking the entire Doximity team for working so hard and efficiently to serve more doctors every day than ever before. So thank you, and thanks, everyone, for joining. Bye.

Operator

This concludes today's conference call. We thank you for joining. You may now disconnect.