Doximity at the New York Stock Exchange for its initial public offering on June 24, 2021.
Source: NYSE
Shares of Doximity popped 21% on Thursday after the company reported third-quarter fiscal 2025 results that beat analysts’ expectations for revenue and offered rosy guidance.
Here’s how the company did:
- Earnings per share: 37 cents, may not compare with the 34 cents expected by LSEG
- Revenue: $168.6 million vs. $152.8 million expected by LSEG
Doximity is a digital platform for medical professionals that helps clinicians stay current on medical news, manage paperwork, find referrals and carry out telehealth appointments with patients. The company primarily generates revenue through its telehealth tools, hiring solutions and marketing offerings for clients such as pharmaceutical companies.
Doximity’s revenue increased 25% in its third quarter from $135.3 million during the same period last year, according to a release.
For its fiscal fourth quarter, Doximity said it expects to report revenue between $132.5 million and $133.5 million, compared with analysts’ estimates of $123.8 million.
The company also raised guidance for its full fiscal year, and said it expects to report revenue between $564.6 million and $565.6 million, up from the range the company shared last quarter, when it expected $535 million to $540 million. Analysts were expecting $540 million for the year.
“We’re proud to deliver another quarter of record engagement in Q3, with over 610,000 unique providers using our clinical workflow tools,” Doximity CEO Jeff Tangney said in a statement. “Our AI tools grew the fastest last quarter, up 60% over the prior quarter, while our newsfeed surpassed more than one million unique providers.”
The company reported net income of $75.2 million, or 37 cents per share, during its third quarter, up from $48.0 million, or 24 cents per share, a year prior. Doximity’s adjusted EBITDA was $102.0 million, up 39% year over year.
Doximity has been a bright spot within the battered digital health sector, which has faced a reckoning as companies have had to adjust to a more muted growth environment. The company’s stock price more than doubled in 2024.