SAN FRANCISCO - Doximity, Inc. (NYSE: DOCS) saw its shares rocket around 30% in premarket trading Thursday after the digital platform for medical professionals reported fiscal first-quarter results that exceeded analyst expectations and provided an upbeat outlook.
The company posted adjusted earnings per share of $0.28 for the quarter ended June 30, beating the consensus estimate of $0.22. Revenue came in at $126.7 million, up 17% year-over-year and surpassing analysts' projections of $119.89 million.
Doximity's strong performance was driven by robust engagement on its platform. CEO Jeff Tangney noted that a record 590,000 unique providers used the company's AI, telehealth, messaging, and scheduling workflow tools during the quarter.
"We were pleased to deliver strong profits and record engagement last quarter, as we beat on both our top and bottom lines," Tangney said.
Looking ahead, Doximity provided guidance above Wall Street estimates. For the second quarter, the company expects revenue between $126.5 million and $127.5 million, compared to the consensus of $124 million. For fiscal year 2025, Doximity projects revenue of $514 million to $523 million, topping analyst expectations of $512.3 million.
The company's adjusted EBITDA for Q1 grew 42% YoY to $65.9 million, representing a margin of 52%.
Doximity's net revenue retention rate, a key metric indicating customer loyalty and expansion, remained strong at 117% for the trailing 12 months ended June 30.
"The quarterly results are particularly impressive given the relatively cautious survey results we published a few weeks ago," Bank of America analysts commented in a post-earnings note.
"Doximity is seeing improving contributions from new products and its new client portal, the latter of which is now available to 30% of clients," they added.
BofA believes the key focus of the call will be on understanding the factors behind the strong performance and the outlook for the rest of the year. Moreover, attention will be on any effects related to election demand, recent customer discussions, and the progress of new products.
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