Why Doximity Stock Was Soaring Today
Shares of Doximity (NYSE: DOCS), the social network for doctors, were jumping today after the company easily beat estimates in its fiscal first-quarter earnings report.
The stock was up 33.1% as of 1:04 p.m. ET on the news.
Doximity delights
The social media company reported revenue growth of 17% to $126.7 million in the period ended June 30, which easily beat the consensus estimate of $119.9 million.
Profit growth soared as well with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumping 42% to $65.9 million, giving the company an EBITDA margin of better than 50%.
On the bottom line, adjusted earnings per share jumped from $0.19 to $0.28, which topped expectations for $0.22.
CEO Jeff Tangney said, "We were pleased to deliver strong profits and record engagement last quarter," and he noted a record 590,000 providers using Doximity tools like artificial intelligence, telehealth, and scheduling.
Can Doximity keep gaining?
Doximity also offered better-than-expected guidance, calling for revenue of $126.5 million to $127.5 million in the fiscal second quarter, representing 12% growth at the midpoint and better than estimates at $124 million. It also called for $62.5 million to $63.5 million in adjusted EBITDA.
For the full year, the company sees revenue of $514 million to $523 million, more modest growth of 9% at the midpoint but ahead of estimates at $512.2 million, and adjusted EBITDA of $248.5 million to $257.5 million.
Doximity is still down sharply from its pandemic peak and investors would like to see faster growth, but the high margins speak to its strength.
If the company can keep growing its user base and engagement, the stock should keep moving higher.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.
Why Doximity Stock Was Soaring Today was originally published by The Motley Fool