NEW YORK, NY - 
(NewMediaWire) - May 9, 2024 - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) reminds investors that a complaint has been filed on behalf of purchasers or acquirers of the common stock of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS) between February 9, 2022 and April 1, 2024 (the “Class Period”).
Deadline Reminder: If you are a member of the proposed Class, you may move the court no later than June 17, 2024 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
Doximity operates a digital platform for medical professionals and, as alleged in the complaint, generates revenue largely from pharmaceutical companies and health systems, by allowing them to promote their services and products to platform users.
The complaint alleges that throughout the Class Period, Defendants touted the sustainability of the Company's business prospects while also downplaying the importance of customer upsell rates on the Company's financial performance. Despite Defendants' repeated claims regarding the sustainability of Doximity's growth and profitability, according to the complaint investors began to learn the truth on August 8, 2023, when, after the market closed, Doximity reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023, and slashed its guidance for the full fiscal year 2024. Doximity also announced that it would reduce its workforce by approximately 10% and that the workforce reduction is expected to cost approximately $8 million to $10 million. Further, according to the complaint, in explaining this about-face, Defendant Anna Bryson, the Company’s CFO, admitted that the Company's "major upsells have materially underperformed, and we expect this to continue in the near term." Defendant Jeffrey Tangney, the Company’s co-founder and CEO, further explained that Doximity failed to close sales due, in part, to "fewer face-to-face meetings with our clients."
Following this news, the price of Doximity common stock declined $7.49 per share, nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.
The complaint further alleges that investors learned more about the unsustainability of the Company's revenue growth on April 1, 2024, when Jehoshaphat Research published a report alleging, among other things, that "Doximity's underlying sales . . . are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition."
Following this news, the price of Doximity common stock declined by $1.11 per share, more than 4% over two trading-days, from a close of $26.91 per share on March 28, 2024, to close at $25.80 per share on April 2, 2024.
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KAPLAN FOX & KILSHEIMER LLP
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E-mail: pmayer@kaplanfox.com
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KAPLAN FOX & KILSHEIMER LLP
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E-mail: lking@kaplanfox.com
