Stan Berenshteyn

Stan Berenshteyn asked about Doximity's bookings discussions, specifically whether customers are sharing concrete budget expectations or if it remains a theoretical framework with 'squishiness' that will be resolved in future months or quarters.

Answer

Jeff Tangney, Co-founder and CEO, stated that it varies by customer. Some brand managers intend to spend but await fund release, while others who signed by December 31st provide clear expectations and unlock better economics. He noted that some customers would like to spend more but lack access to funds, hoping these become available later.

Stan Berenshteyn inquired about the workflow of Doximity's medical AI for its 300,000 unique prescribers, specifically how providers are using the features and whether they are directly accessing the AI or being organically redirected within the app. He also asked about the nature of budget discussions, whether customers provide concrete expectations or if there's still 'squishiness' in theoretical frameworks.

Answer

Jeff Tangney, CEO and Co-Founder, described the AI workflow as integrated into the Doximity platform, with on-ramps from telehealth visits (scribing, SOAP note generation, one-click into DocsGPT for assessment/plan double-checks) and the newsfeed (follow-up questions). He emphasized Doximity's role as a platform, not just a feature. Regarding bookings, Jeff noted that budget clarity varies; some brand managers intend to spend but await fund release, while others who signed early have clear commitments to unlock better economics. He acknowledged that some customers desire to spend more but lack immediate access to funds.

Stan Berenshteyn asked about Doximity's R&D expense outlook beyond the current fiscal year, specifically if a more significant acceleration is expected due to ongoing AI tool development. He also requested clarification on the specific modules included in the integrated programs that represented 40% of bookings.

Answer

Anna Bryson, CFO, stated it's too early for long-term guidance on expenses, as Doximity is still learning about AI investment needs and potential internal AI savings. She expects the current ramp in AI-related spend to plateau as scale efficiencies kick in, maintaining over 55% adjusted EBITDA margins. Jeff Tangney, Co-founder and CEO, clarified that it's not specific modules but 'integrated programs' (AI-optimized programs) that allow Doximity to optimize module usage for clients across various channels (news article, video card, scheduling, telehealth, newsfeed). This approach, similar to Google PMax, delivers strong results by orchestrating client campaigns.

Stan Berenshteyn asked about the increasing investment in the back half of the year, specifically how R&D expenses might evolve beyond this year, and for clarification on the "modules" that represented 40% of bookings.

Answer

CFO Anna Bryson stated it's too soon for longer-term guidance on expenses, as Doximity is still learning AI investment needs and potential internal AI savings. She noted the current ramp is due to the launch phase of AI products, expecting spend to plateau as scale efficiencies kick in, similar to telehealth's initial expense boost. She reiterated confidence in maintaining over 55% Adjusted EBITDA margin. CEO Jeff Tangney clarified that "40% of bookings" refers to integrated programs (AI-optimized programs), not specific modules. These programs allow Doximity to optimize module usage for clients across various channels (news article, video, scheduling, telehealth, newsfeed), orchestrating for them like Google P-MAX, leading to strong results and greater client trust.

Stan Berenshteyn of Wells Fargo Securities asked if the free AI Scribe could pressure gross margins with high utilization and whether pharma clients are using the portal for more frequent budget adjustments.

Answer

CEO Jeff Tangney assured that Scribe costs are minimal, at 'pennies per visit,' due to falling technology prices, posing no threat to margins. VP of IR Perry Gold clarified that the portal is primarily a sales enablement tool used by Doximity's team to propose deals and upsells efficiently, rather than a tool for clients to make intra-quarter budget changes.

Stan Berenshteyn requested an update on Omnicell's robotics business, specifically the percentage of product revenue accounted for by robotic products in 2025 and expectations for 2026. He also asked for an update on the Enliven and 340B services, including expectations for Enliven given earlier pressures, and the performance and outlook for 340B. Finally, he inquired about the $10 million incremental expenses for the ERP platform implementation in 2026, asking if these costs would cease in 2027 or if improved efficiencies would help margins.

Answer

Baird Radford, EVP and CFO, stated that the robotics platform (XR2) has not been a material revenue component, being a lower volume product. Nnamdi Njoku, EVP and COO, added that automation and robotics are still seen as solutions for health system challenges. Randall Lipps, Chairman, President, CEO, and Founder, acknowledged headwinds in the retail segment for Enliven but believes the solutions are long-term viable, with a focus on helping customers navigate current challenges. He noted 340B is a compelling part of the specialty offering, with no material change to revenue expectations despite market chatter. Randall Lipps also confirmed the ERP implementation is a multi-year initiative, expected to drive efficiencies and commercial opportunities, though not a dollar-for-dollar offset to costs.

Stan Berenshteyn from Wells Fargo Securities requested an update on Omnicell's robotics business, including its percentage of product revenue in 2025 and expectations for 2026 bookings. He also asked for an update on the performance and expectations for the Enliven and 340B businesses. Finally, he inquired about the $10 million incremental ERP platform implementation expenses for 2026 and potential future efficiencies.

Answer

Baird Radford, EVP and CFO, noted that robotics revenue has not been material, though momentum for the XR2 offering is encouraging for its discrete market. Nnamdi Njoku, EVP and COO, added that automation and robotics remain part of the solution for health system challenges. For Enliven, Nnamdi Njoku acknowledged retail segment headwinds but affirmed the long-term value of its solutions, focusing on helping customers navigate current challenges. He described 340B as a compelling part of the specialty business, with no material change to revenue expectations despite market chatter. Baird Radford, EVP and CFO, confirmed the ERP implementation is a multi-year initiative, with planned efficiencies expected to yield benefits, though not dollar-for-dollar offsets, particularly in customer interactions.

Stan Berenshteyn of Wells Fargo requested an update on the IV compounding product, including the current demand environment and a timeline for when the compounding robot would graduate from its limited release phase.

Answer

Randall Lipps, Founder, Chairman, President & CEO, announced that the fourth and final phase of the IV product's development was complete, making it ready for general availability. He noted that the product is gaining momentum, has a backlog of installations, and is seeing strong customer referenceability, positioning it well to solve a complex customer problem.

Stan Berenshteyn asked about the impact of regulatory focus on direct-to-consumer advertising on Crossix's audience targeting, and the sales pipeline for safety/regulatory products and the IQVIA partnership.

Answer

Peter Gassner (CEO) explained that increasing digital marketing spending makes Crossix's measurement and optimization more critical, projecting it as a well-growing business. He noted long sales cycles for safety and regulatory, with AI potentially accelerating safety adoption, and highlighted the positive macro-level trends from the IQVIA partnership.

Stan Berenshteyn asked about the impact of regulatory focus on direct-to-consumer advertising on Crossix's audience targeting and any changes in the sales pipeline for safety and regulatory products, as well as contributions from the IQVIA partnership.

Answer

Peter Gassner (CEO) explained that digital marketing spending is increasing, making Crossix's measurement and optimization more critical, and expects Crossix to be a well-growing business for 3-5 years due to innovation and data network investment. He noted that safety and regulatory sales cycles remain long but highlighted momentum in safety, potential for AI to accelerate adoption, and the IQVIA partnership's positive impact on customer confidence and interop, unleashing commercial and clinical solutions.

Stan Berenshteyn from Wells Fargo Securities asked to size the dollar opportunity for Veeva Nitro and Network following the IQVIA settlement. He also questioned why commercial subscriptions were flat sequentially and what drove the raised guidance for the segment.

Answer

CEO Peter Gassner estimated that direct revenue from Nitro and Network would constitute about 25% of the total benefit, with the remaining 75% stemming from the strategic value of creating a more complete commercial suite. CFO Brian Van Wagener reiterated that Crossix remains the primary growth driver in commercial and that the factors influencing the segment are consistent with previous quarters.

Stan Berenshteyn of Wells Fargo Securities asked if Veeva is seeing any signs of biopharma commercial activity being pulled forward into the first half of the year, particularly within Crossix. He also requested an update on the adoption and momentum of the Compass data products.

Answer

CEO Peter Gassner stated he has not seen any particular pull-forward in Crossix, but rather a consistent trend of customers building their digital marketing capabilities. Regarding Compass, he said it's doing well, adding 10 brands in the quarter, but noted that the prescriber and national products are still in the early adopter phase and not yet at scale.

Stan Berenshteyn asked for initial expectations on converting the 7 million ACA bronze plan opportunity into HSAs next year and whether HealthEquity plans to separately break out lives captured from ACA plans.

Answer

Steve Neeleman, Founder and VC, estimated that 3 to 4 million households could gain access to HSAs through the ACA expansion, emphasizing education, marketing, and health plan partnerships to capitalize on the tax savings and purchasing power. James Lucania, CFO, stated that HealthEquity would not separately break out ACA-derived HSAs, as 'an HSA is an HSA.'

Stan Berenshteyn from Wells Fargo asked if the company's forward contracts on interest rates retain any upside if rates move higher. He also questioned how accretive the proposed HSA legislation might be to the current pace of new account growth.

Answer

CFO James Lucania clarified that the forward contracts effectively lock in a rate on the hedged portion, so there is no further upside; the strategy is to de-risk the maturity wall, not speculate. Founder & Vice Chairman Dr. Stephen Neeleman responded that while the direct impact on new accounts is unknown, the legislation's broader value is in making HSAs more attractive to employers, which could drive wider adoption.

Stan Berenshteyn of Wells Fargo asked about the drivers for the decline in subscription revenue, focusing on the GoodRx Gold program, and whether new offerings like the erectile dysfunction (ED) subscription were providing an offset.

Answer

CEO Wendy Barnes acknowledged the decline in the Gold program but positioned it within a strategic pivot towards more targeted, condition-specific subscriptions. She expressed satisfaction with the early results of the new ED offering and announced plans to expand into weight loss and hair loss by year-end, leveraging the platform's large user base to return the category to growth.

Stan Berenshteyn from Wells Fargo Securities inquired about the decline in subscription revenue, specifically asking about the performance of the Gold subscription and any offsetting impact from the new erectile dysfunction (ED) subscription.

Answer

CEO Wendy Barnes acknowledged the decline in the Gold program but positioned it as part of a strategic shift towards more focused, condition-specific subscriptions. She noted positive early results from the new ED offering and plans to launch additional subscriptions for weight loss and hair loss by year-end, leveraging GoodRx's large existing user base to return the category to growth.

Stan Berenshteyn of Wells Fargo Securities inquired about the revenue run rate of the extended Defense Health Agency (DHA) contract compared to the prior pilot and asked about any key performance indicators (KPIs) that will influence the decision for a 2027 renewal.

Answer

Chairman and CEO Dr. Ido Schoenberg explained that the platform has successfully scaled globally, nearly tripling visit traction compared to the legacy system. CFO & COO Mark Hirschhorn added that the annualized subscription revenue value for the one-year extension is slightly greater than what it had been under prior billings.