Key Takeaways
- Doximity posted higher-than-expected profit, sales, and outlook as customer interaction increased, aided by artificial intelligence tools.
- Adjusted earnings per share were a third more than analysts’ estimates, and revenue was up nearly 25% year-over-year.
- The telehealth software provider’s shares traded at their highest level in about 3 1/2 years.
Shares of Doximity (DOCS) skyrocketed more than 30% Friday, a day after the telehealth software provider posted better-than-anticipated results and guidance as it added customers, boosted through the use of artificial intelligence (AI).
The company posted fiscal 2025 third-quarter adjusted earnings per share (EPS) of $0.45, while analysts surveyed by Visible Alpha expected $0.34. Revenue increased almost 25% year-over-year to $168.6 million, also above forecasts.
Co-founder and CEO Jeff Tangney said Doximity had “another quarter of record engagement in Q3, with over 610,000 unique providers using our clinical workflow tools.” Tangney added that the company’s AI offerings “grew the fastest last quarter, up 60% over the prior quarter, while our newsfeed surpassed more than one million unique providers.”
Doximity sees full-year adjusted EBITDA between $306.6 million and $307.6 million, with revenue of $564.6 million and $565.6 million. The Visible Alpha estimates were for $282.5 million and $497.5 million, respectively.
Doximity shares surged 33% in recent trading to $77.53, their highest level since September 2021. They have nearly tripled in the last year.
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