Doximity bets big on hospital adoption of enterprise AI as it ramps up tech spending

Doximity, a digital platform for U.S. medical professionals, is heavily investing in artificial intelligence (AI) as it anticipates a surge in hospital adoption of enterprise AI platforms. CEO Jeff Tangney expresses confidence that hospitals will increasingly adopt AI due to its accuracy and trustworthiness. Doximity, which offers workflow tools such as telehealth, clinician-to-patient dialer, and digital faxing capabilities, aims to become a leading AI platform for doctors.

The company has signed 165 health systems as AI clients, including eight of the nation's top Honor Roll hospitals. Wall Street responded positively to Doximity's strong early returns on its AI investments, with the company's shares more than doubling in overnight trading. However, the company reported a decrease in net income and adjusted EBITDA year-over-year.

Despite this, Doximity raised its full-year 2027 outlook, expecting revenue between $671 million and $681 million, up from the previous range of $664 million to $676 million. The company expects to generate free cash flow of $40 million for the year. As the healthcare AI market transitions from a "Wild West" to a focus on privacy and risk management, Doximity believes it is well-positioned to win in this space, similar to its success in telehealth.