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Doximity made a significant impact on the New York Stock Exchange with its initial public offering on June 24, 2021. Recently, the company’s performance has captured attention, particularly after a notable rise in its share price.
Following a strong report for the third quarter of fiscal 2025, Doximity’s shares surged by 25% during extended trading hours on Thursday. The company surpassed analysts’ forecasts for revenue, bolstering its outlook for the upcoming periods.
In terms of financials, here are the highlights:
Earnings per share: 37 cents, exceeding the expected 34 cents
Revenue: $168.6 million, surpassing the anticipated $152.8 million
Doximity operates a digital platform designed for healthcare professionals, facilitating access to medical news, simplifying administrative tasks, enhancing referral processes, and enabling telehealth consultations with patients. The organization’s primary revenue channels include telehealth solutions, recruitment services, and marketing partnerships with companies in the pharmaceutical sector.
In the third quarter, Doximity achieved a 25% increase in revenue, up from $135.3 million in the same quarter the previous year, as detailed in their release.
For the upcoming fiscal fourth quarter, the company forecasts revenue between $132.5 million and $133.5 million, outstripping analysts’ estimates of $123.8 million.
Moreover, Doximity raised its guidance for the full fiscal year, projecting revenues between $564.6 million and $565.6 million. This is a notable increase from the previous guidance of $535 million to $540 million, while analysts had estimated overall annual revenues of $540 million.
“We take pride in achieving another record engagement quarter in Q3, with over 610,000 distinct providers utilizing our clinical workflow offerings,” stated Doximity CEO Jeff Tangney. He highlighted that the company’s AI capabilities saw remarkable growth, increasing 60% from the previous quarter, and noted that the newsfeed service now attracts over one million unique providers.
The financial results illustrated a net income of $75.2 million (or 37 cents per share) for the quarter, representing an increase from $48.0 million (24 cents per share) during the same period last year. Additionally, Doximity reported an adjusted EBITDA of $102.0 million, marking a 39% improvement year-over-year.
Doximity has emerged as a notable success story within the digital health arena, which has been facing challenges as businesses adapt to lower growth expectations. In fact, the company’s stock price has more than doubled throughout 2024, illustrating its resilience in a tough market.
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