Medical professional network Doximity (NYSE: DOCS) will be announcing earnings results this Thursday afternoon. Here’s what investors should know.
Doximity met analysts’ revenue expectations last quarter, reporting revenues of $145.4 million, up 5.1% year on year. It was a slower quarter for the company, with full-year guidance of slowing revenue growth and revenue guidance for next quarter slightly missing analysts’ expectations.
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 3.7% year on year, slowing from the 15.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 0.5%, and Procore Technologies reported revenues up 15.8%, topping estimates by 2.6%. Cadence Design Systems traded up 1.8% following the results while Procore Technologies was also up 7.2%.
Read our full analysis of Cadence Design Systems’s results here and Procore Technologies’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 9.6% on average over the last month. Doximity is down 4.6% during the same time and is heading into earnings with an average analyst price target of $24.61 (compared to the current share price of $21.82).
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