Medical professional network Doximity (NYSE: DOCS) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
Doximity beat analysts’ revenue expectations last quarter, reporting revenues of $185.1 million, up 9.8% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Doximity a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Doximity’s revenue to grow 4.8% year on year, slowing from the 17.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Doximity has a history of exceeding Wall Street’s expectations.
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. Q2 Holdings delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 0.9%, and Cadence Design Systems reported revenues up 18.7%, topping estimates by 1.9%. Q2 Holdings traded down 3.4% following the results while Cadence Design Systems was also down 3.3%.
Read our full analysis of Q2 Holdings’s results here and Cadence Design Systems’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 17.4% on average over the last month. Doximity is up 16.3% during the same time and is heading into earnings with an average analyst price target of $37.77 (compared to the current share price of $26.36).
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