Why Doximity Stock Soared Today

Actions of Doximity (DOC 35.78%)the doctors’ social network, jumped today after the company easily beat estimates in its fiscal first quarter report.

The stock was up 33.1% at 1:04 PM ET on the news.

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Doximity delights

The social media company reported a 17% rise in revenue to $126.7 million in the period ended June 30, which easily beat the consensus estimate of $119.9 million.

Profit growth also increased with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rising 42% to $65.9 million, giving the company an EBITDA margin of better than 50%.

Bottom line, adjusted earnings per share rose from $0.19 to $0.28, which beat expectations for $0.22.

CEO Jeff Tangney said, “We were pleased to deliver strong profits and record engagement last quarter,” and noted a record 590,000 providers using Doximity tools like AI, telehealth and scheduling.

Can Doximity keep winning?

Doximity also provided better-than-expected guidance, calling for revenue of $126.5 million to $127.5 million in the fiscal second quarter, up 12 percent at the midpoint and better than estimates of 124 million USD. 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, a more modest increase of 9% at the midpoint but ahead of estimates of $512.2 million, and adjusted EBITDA of $248.5 million to $257.5 million dollars.

Doxity is still down sharply from the peak of the pandemic, and investors would like to see faster growth, but the high margins speak to its strength.

If the company can continue to grow its user base and engagement, the stock should continue to move higher.