Healthcare professional network Doximity (NYSE:DOCS) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter Doximity reported revenues of $115.3 million, up 17.8% year on year, beating analyst revenue expectations by 3.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full year.
Is Doximity buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Doximity's revenue to grow 17.6% year on year to $110.1 million, slowing down from the 40.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.54%.
Looking at Doximity's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Unity delivered top-line growth of 56.3% year on year, beating analyst estimates by 4.28% and Olo reported revenues up 22.2% year on year, exceeding estimates by 2.92%. Unity traded up 16.4% on the results, Olo was up 8.81%. Read our full analysis of Unity's results here and Olo's results here.
There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.74% over the last month. Doximity is down 4.29% during the same time, and is heading into the earnings with analyst price target of $37, compared to share price of $33.04.
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The author has no position in any of the stocks mentioned.