Healthcare professional network Doximity (NYSE: DOCS) will be reporting results tomorrow after the bell. Here’s what to look for.
Doximity beat analysts’ revenue expectations by 9.6% last quarter, reporting revenues of $168.6 million, up 24.6% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Doximity a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Doximity’s revenue to grow 13.2% year on year to $133.6 million, improving from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Doximity has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.8% on average.
Looking at Doximity’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Toast delivered year-on-year revenue growth of 24.4%, missing analysts’ expectations by 0.8%, and Upstart reported revenues up 67%, topping estimates by 5.2%. Toast traded up 11.6% following the results while Upstart was down 9.7%.
Read our full analysis of Toast’s results here and Upstart’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 19% on average over the last month. Doximity is up 13.7% during the same time and is heading into earnings with an average analyst price target of $71.12 (compared to the current share price of $60.52).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
