SAN FRANCISCO - Doximity, Inc. (NYSE: DOCS), a leading digital platform for medical professionals in the U.S., reported a strong fiscal 2024 fourth quarter, topping analyst expectations for both earnings per share (EPS) and revenue. This led to an 18% surge in Doximity's stock price in premarket trading on Friday.
The company announced an EPS of $0.25, which was $0.05 higher than the analyst consensus of $0.20. Revenue also exceeded forecasts, coming in at $118.1 million against the expected $116.41 million.
For the full fiscal year 2024, Doximity achieved a significant 13% increase in total revenues, reaching $475.4 million. The company also reported a net income growth of 31% and a 25% rise in adjusted EBITDA compared to the previous year. The fourth quarter alone saw a 6% year-over-year (YoY) increase in total revenues, with net income and adjusted EBITDA growing by 32% and 15% YoY, respectively.
CEO Jeff Tangney expressed satisfaction with the results, highlighting the strong profits and record engagement, with over 580,000 unique providers utilizing the company's workflow tools in the last quarter.
Looking ahead, Doximity provided an optimistic financial outlook for fiscal 2025, with revenue projections ranging between $506 million and $518 million, well above the analyst consensus of $473.8 million. The company's adjusted EBITDA is expected to be between $238 million and $250 million. For the fiscal first quarter ending June 30, 2024, revenue is anticipated to be between $119.5 million and $120.5 million, slightly above the consensus of $119.1 million, with adjusted EBITDA forecasted between $55 million and $56 million.
Doximity also announced a stock repurchase program authorized by its board of directors, allowing for the repurchase of up to $500 million of the company's Class A common stock. This program has no expiration date and will be subject to general business and market conditions.
"As seen in the past several prints, DOCS continues to perform on profitability despite a slightly slower growth outlook relative to the Street," Evercore ISI analysts said in a note.
"With DOCS’ client portal continuing to see traction on onboarding with the launch of its reporting tools, we look forward to the next phase of development which incorporates purchasing capabilities as well as some pricing tools, expected to launch this quarter," they added.
"In addition, we received additional clarity on why deferred revenues may not in fact be a perfect metric for DOCS. However, given the likely post-print re-rating, slightly lower topline growth, and the unclear macro environment that may weigh on ad demand, we remain on the sidelines with a revised PT of $29."
The company's success is attributed to its commitment to providing digital tools for medicine, facilitating collaboration among colleagues, and streamlining clinical workflows. With a network that includes over 80% of U.S. physicians, Doximity aims to enhance productivity and improve patient care through its innovative platform.
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