Updated Aug 7 at 6:02pm ET.
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Doximity reported revenue of about 157 million dollars for the quarter, which is 7 percent higher than the same time last year. While its earnings of 29 cents per share were slightly lower than the 30 cents analysts expected, the business remains highly profitable with a 48 percent margin on adjusted EBITDA. This is a measure that shows how much cash a company earns from its core operations before accounting for things like taxes and interest.
The real highlight is how much doctors are using the platform. The number of active prescribers using its workflow tools rose more than 30 percent, and queries for its AI search tool grew 25 percent from the previous quarter. For a company that makes money by selling digital ads to pharmaceutical firms, keeping doctors logged in and using these tools is the most important part of the business. As long as doctor engagement stays high, the shift of marketing budgets from physical sales reps to Doximity's digital platform should continue.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company reports its first-quarter results after the closing bell today. Analysts are looking for earnings of about 30 cents per share on 150 million dollars in revenue. Beyond the top-line numbers, we are watching for updates on how many doctors are using its clinical tools and whether pharmaceutical companies are continuing to shift their marketing budgets to the platform. These are the core drivers of the business's high-margin growth.
An independent study from Stanford and Harvard researchers found that Doximity Ask, the company's AI tool for medical professionals, outperformed several leading AI models in safety and risk assessments. The study used a benchmark called NOHARM to evaluate how well these models handle medical information without creating risks for patients.
This is a positive sign for the company's efforts to keep doctors engaged. If Doximity can prove its AI tools are safer and more reliable than general-purpose models, it strengthens its position as the primary digital workspace for U.S. physicians.
Source: Business Wire
Analysts recently raised their price targets following the company's latest earnings report. Most experts are split, with 9 buys and 14 neutral or negative ratings, and the average target of $28 suggests the stock is fairly priced.
The company has a history of beating analyst targets, though it has been a bit more inconsistent lately. Management generally sets a bar they can clear, but the recent miss on earnings per share shows there is still some volatility in their costs.
| Expectation | |
|---|---|
| EPS | $0.36 |
| Revenue | $172M |
