Doximity Jumps Over 8% on Upbeat Q3 Results

Doximity, Inc. (NYSE: DOCS) reported upbeat third-quarter Fiscal 2022 results, driven by strong revenues. Following the news, shares of the digital platform for U.S. medical professionals jumped 8.4% in the extended trading session on Tuesday. 

Results in Detail 

Doximity reported adjusted earnings of $0.29 per share, which comfortably beat the consensus estimate of $0.13 per share. Its earnings rose significantly from earnings of $0.07 per share recorded in the same quarter last year. Additionally, adjusted net income more than tripled to $63.6 million. 

Furthermore, total revenues of $97.9 million grew 67% year-over-year and topped analysts’ expectations of $86.27 million. 

Adjusted EBITDA more than doubled on a year-over-year basis to $47 million. 

Official Comments 

Sharing his thoughts, Doximity CEO Jeff Tangney commented, “We had a strong Q3 led by our existing clients as our net revenue retention rate hit 171%. Our telehealth platform grew to 350,000 active providers and we agreed to acquire Amion which powers nearly 200,000 physician schedules. It’s our life’s work to build the physician cloud – a digital platform to help physicians save time, so they can provide better care for patients.” 

Guidance 

For Q4 FY22, revenue is likely to be in the range of $89 million to $90 million, while adjusted EBITDA is estimated between $34 million and $35 million. 

For Fiscal 2022, the company expects revenue in the range of $338.9 million to $339.9 million, versus the consensus estimate of $327.6 million. Additionally, adjusted EBITDA is expected between $144.9 million and $145.9 million. 

Other Developments 

Doximity revealed that it has acquired Amion, an on-call physician scheduling site, to expand its physician cloud platform. The deal is likely to conclude on April 1, 2022. 

Wall Street’s Take  

The Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 7 Buys, 2 Holds, and 1 Sell. The average Doximity price target of $72.30 implies 45.15% upside potential. Shares have lost 6% over the past year. 

Bloggers Weigh In 

Bloggers seem enthused by the company’s earnings results and opportunistic acquisition. TipRanks data shows that financial blogger opinions are 75% Bullish on DOCS, compared to a sector average of 67%.

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